Thus, the Stock option plan system has acquired real features. It was approved by the Parliament last year, but it has not been in effect so far due to the lack of regulations and application procedure. This was repeatedly pointed out by representatives of the business community. The Ministry of Finance has developed a relevant regulation on the Long-Term Incentive Program. The document will soon be considered at a government meeting.
According to the draft, the Program is aimed at stimulating productivity and loyalty of employees through granting them options to purchase employer’s shares on favorable terms. De facto, it is a long-term financial incentive provided to employees and/or administrators of enterprises to motivate them to participate in increasing their value.
The draft prescribes that the procedure for implementing the program will be set out in the regulations of the legal entity itself, approved by the general meeting of the company’s participants/shareholders.
Individuals who meet several mandatory criteria are eligible to participate in the program. They must be individuals who are residents of Moldova, in accordance with Article 5(5) of the Tax Code, who have the status of employee or administrator of the legal entity, have at least 3 years of work experience in the company on the date of granting participation shares, fulfill the requirements and indicators established in the employment contract or other internal regulations, and are not in a situation of conflict of interest with the legal entity.
In addition, the program provides for a minimum period of 3 years between the time of granting the right to acquire/receive participation securities (participatory interests) and the time of exercising this right.
