HR Committee: Incentive Schemes in Global Organizations
On December 17, members of AmCham’s HR Committee gathered at Lundgrens for a roundtable discussion on incentive programs for global companies – from both a legal and practical perspective.
Subsidiaries of U.S. Companies in Denmark may have difficulty hiring employees using stock options or other incentives due to differences in governmental regulation. However, incentive programs can be effective when utilized properly – so it is important for HR Managers to understand the rules, and strike a balance to ensure the programs have the intended outcome.
Lundgrens’ Partner & Employment Law expert Anne Marie Abrahamson shared recent changes to the Danish Stock Option Act, which will come into force on January 1, 2019.
The new legislation removes limitations to the ‘freedom of agreement’ in stock option schemes, so companies will have more flexibility after termination – regardless of the reason for the termination.
On the practical side, incentives plans do make a difference in improving business performance and focus on key on objectives according to Per Erik Sørensen, Partner and Chief of Staff at Willis Towers Watson.
Mr. Sørensen spends his time advising global companies on incentive schemes, and he underscored that it is critical that leaders give honest and constructive feedback for these incentive schemes to be effective.
To see Anne Marie Abrahamson’s presentation, click here.
To see Per Erik Sørensen’s presentation, click here.