Employee share/stock options (ESOP) for a digital marketing startup

A client, a high-growth foreign-owned Bulgarian startup recently approached NBLO for advice on the next phase of its growth needs. Our task was to help the client implement an employee share option plan (also known as an ’employee stock option plan’ or ‘ESOP’ in US usage). As a startup keen to incentivise performance in the longer-term, our client needed something that worked equally well for both employees and key associates. ESOPs were historically the preserve of multinationals, but are now essential in the toolkit of startups. 

The final document took into consideration a need to change the company’s capital structure and updated the articles of association.  The Bulgarian corporate law of private companies especially is not ideally-suited to ESOPs, but we managed to find a way to satisfy both all legal requirements, and our client’s need for modern corporate instruments for growth.