Employee stock ownership plan (ESOP) for a digital marketing startup10th November 2020
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 to the toolkit of startups.
The final document took into consideration the necessity for changes in the company’s capital structure and corporate organisation. The Bulgarian corporate law of private companies in particular 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.