Glossary

Employee Incentives

Employee incentives refer to a variety of programs designed to reward employees—often with equity or similar benefits—for their contributions to a company’s success. They can include traditional stock plans (ESOPs), Employee Incentive Programs (EIPs), or other share-based arrangements, all aiming to foster a stronger sense of ownership and motivation among staff. In Germany, many of these incentives benefit from the updated Section 19a of the German Income Tax Act (EStG), revamped by the Future Financing Act, which particularly helps small and medium-sized enterprises (SMEs). Through these…