Corporate & Business

Employee Stock Ownership Plans (ESOPs)

We design employee share plans and options that serve the company's goal of retaining talent, and draft the plan documents to comply with the law and protect both sides.

Why work with a specialist?

An employee share plan links employees' interests to the company's success, but it affects the ownership structure and shareholders' rights. It therefore needs careful design of vesting, exit and leaver provisions.

Who is this service for?

  • Start-ups that want to attract and retain talent.
  • Companies preparing for an offering or a funding round.
  • Established companies rewarding key employees.
  • Employees who want to understand their rights under a plan offered to them.

What we do

Plan design

Choosing the plan type, eligible groups and the share pool.

Vesting terms

Vesting periods and criteria, and the effect of resignation or dismissal.

Plan documents

Drafting the plan rules and participant agreements.

Internal approvals

Preparing the resolutions needed to approve the plan.

How we work

  1. Understanding the company's goals for the plan

    01
  2. Choosing the plan type and eligible groups

    02
  3. Designing vesting and leaver terms

    03
  4. Drafting the plan rules and agreements

    04
  5. Approving and launching the plan

    05

Specialist academic supervision

The firm works under the academic supervision of Prof. Dr. Abdulrahman bin Nafa Alsulami, former Head of the Financing Disputes and Violations Circuit in Jeddah, supervisor of postgraduate judicial studies at King Abdulaziz University, and Executive Member of the Fatwa and Sharia Supervisory Board of Gulf International Bank (GIB).

Supervisor's academic profile

Frequently asked questions

What is the difference between a share grant and an option?

A grant gives the employee shares on set conditions; an option gives the right to buy shares at a set price within a set period.

What happens to an employee's shares if they leave?

The plan rules decide this, so we address resignation, dismissal, death and disability clearly when drafting.

Is a plan suitable for small companies?

Yes. It can be designed to fit the company's size and stage without unnecessary complexity.

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