Considering that the companies within the IT industry and start-ups, in general, have the capacity to multiply their own value in the short term (developing a ‘viable product’) such undertakings usually lack the initial funds to pay adequate compensation and salaries so the additional incentives for employees are enabled creating the opportunity for them to become the shareholders of the company, and to participate in dividend distribution or to capitalize by selling the acquired shares with a premium.
JPM Senior Associate Miloš Maksimović and Associate Luka Hajduković are providing extensive insight on this relatively new financial instrument, serving as an employee’s incentive mechanism as well as a start-up’s financial stimulator when lacking initial capital.
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