Document background
The Vested Equity Agreement serves as a crucial instrument for companies operating under Dutch law to attract, retain, and motivate key personnel by offering them a stake in the company's success. This document is particularly relevant for startups, scale-ups, and established companies implementing employee equity programs, providing a structured framework for gradual equity ownership. It addresses critical aspects such as vesting schedules, performance conditions, tax implications under Dutch tax law, and compliance with Dutch corporate regulations. The agreement typically forms part of a broader compensation strategy and requires careful consideration of both Dutch employment law and corporate governance requirements. Companies commonly use this agreement type when implementing employee stock option plans, restricted stock units, or direct share grants, ensuring alignment between stakeholder interests while maintaining legal compliance.
