#ESOP: How to Deal with the New Case Law on the Forfeiture of Vested Virtual Shares – A Practical Update for Employers and Employees | Legal Ninja Snapshot
By EsqSocial Corporation 06/05/25
Incentive programs like an employee stock option plan or a virtual stock option plan ("VSOP") are widely used by young technology companies ("Company") to reward and retain talent ("Beneficiaries"). A key feature in these programs is vesting – a process where the Beneficiaries "earn" rights to specific benefits over time. However, a recent and still unpublished ruling by the German Federal Labor Court (Bundesarbeitsgericht – "BAG") has created uncertainty about how vesting rules in VSOPs are to...
By: Orrick, Herrington & Sutcliffe LLP