Why participation:
From intent to measurable outcomes
In the past, it was a question whether a company should consider offering a way (key) employees could participate via a share participation scheme. Nowadays, it is no longer a question of whether the company should offer a share participation scheme; it is a question of when a company should offer this to its (key) employees. The reason why a share participation scheme should be offered depends on the company and could also change within the company over time. Below we will provide more insights into the objectives.
Objectives that fit your strategy
Select the objectives that are most relevant to your business. Common goals include attracting scarce skills, retaining key contributors, stronger engagement, stakeholder alignment, fair sharing of success and downside, and a longer-term focus. For many employers, cash preservation is a key part of the rationale, especially during growth phases or in cyclical sectors. Governance and control can also be objectives, for example, where you wish to separate voting rights from economic rights using a Dutch trust office foundation (STAK).
Make the connection between your objectives and the behaviours you want to see if you wish to make better decisions under uncertainty, and describe what “owner-like behaviour” looks like in your context. If retention is the priority, define the roles and teams where regretted attrition has the most impact. If culture matters, be clear about the ownership signals you want to send.
Make objectives measurable
Intent becomes credible when it is measurable and verifiable. Translate motives into metrics you can track and manage. Examples include reducing regretted attrition in defined populations over the next 12 months, increasing offer acceptance in target roles within two quarters, improving the ownership index year on year in the engagement survey, or increasing the share of multi-year investments that meet hurdle rates.
Set baselines now, agree on targets, and determine who is responsible for each metric. Establish a review cadence so that the plan evolves in tandem with your business, rather than drifting out of alignment.
Prioritise the trade-offs
Limit yourself to two or three primary objectives and be explicit about the choices you are making. Simplicity drives understanding; precision can target outcomes more precisely, but it also adds complexity. Inclusion builds culture; focus concentrates value where skills are scarce. Equity preserves cash today; dilution arrives tomorrow. Full-value shares offer a line of sight; options and stock appreciation rights (SARs) create leveraged upside with increased variability. Fewer conditions reduce friction; sharper lever rules and malus add protection. Call out these trade-offs so there are no surprises later.
