Document background
The Restricted Stock Agreement serves as a crucial document in Swiss corporate practice for companies looking to implement equity-based compensation programs. It is commonly used when a company wishes to grant shares to employees, executives, or other service providers while maintaining certain controls over the shares through vesting requirements and transfer restrictions. The agreement must be structured in compliance with Swiss law, particularly the Swiss Code of Obligations and relevant tax regulations. It typically includes detailed provisions on vesting schedules, conditions for share ownership, voting rights, dividend entitlements, and specific transfer restrictions. This document is essential for both privately held and public companies in Switzerland implementing equity incentive plans, and requires careful consideration of corporate, securities, and tax law implications. The agreement helps align the interests of key personnel with those of the company while providing a clear framework for the administration of share-based compensation.
