How it works

Super fast set up, future-proof scheme

Forget about countless consultancy that ends up in confusing paperwork and spreadsheets. Start today with a modern, proven and quick approach.

Create the pool

First, we will need some basic company info that will allow us to create the first pool of virtual shares. A virtual share is a copy of an existing share (registered at the notary) that follows its value and/or entitlement for a dividend. That's why people sometimes also call it a phantom share.

You can attach two types of rights to a virtual share: Share Appreciation Rights (SARs), Dividend Rights, or both. Companies aiming for growth often start with SARs, whereas more stable and profitable businesses apply the dividend incentive instead.

Define the rules

Virtual shares are meant to serve as an incentive. Employees and other stakeholders can get rewarded virtual shares for reaching certain goals and milestones. After creating the pool of virtual shares, it is time to think about the basic rules.

You can choose from a variety of business rules, such as vesting periods, payment triggers, leaver consequences and much more. The platform provides an extensive legal framework with plug-and-play clauses that cover situations that we have seen in practice.

Invite participants

Now that you have created the pool of virtual shares and have decided on the basic rules that apply, it's time to start using them. Via our platform, you can create allocations and invite participants to join the program.

The persons will get personal dashboards on which they can review their offer and accept it. The purpose is to keep them engaged, so we advise to work with multiple allocations over time and to actively update the share value in the tool so it shows financial progress.

Create the pool

the basics

Choose the right incentive

Shareholders naturally have two goals: to make the company more valuable and more profitable. Virtual shares mimic this as much as possible - yet with more flexibility.

Virtual share value

A virtual share can track the full value of a real share, or only a future increase in value, also known as "Share Appreciation Rights". In both cases, the person directly benefits from the compay valuation.

The company can decide upfront which rules apply a specific grant and under which circumstances the person can get paid out that value (or not).

In general, this is a great way to motivate people towards long-term company results.

Virtual dividend

Alternatively, or in addition, the virtual share can entitle the person to receive cash whenever the company makes profits and certain predefined conditions are met.

Things such as the number of hours worked in a certain period of time or the short-term targets one has achieved (or not) can determine the final payout.

This mechanism often replaces traditional "profit sharing schemes."

Want to learn more?

Come to one of our events!

We regularly host online and offline events in which we educate entrepreneurs and (prospective) participants.

Leave your contact details, and we will be happy to host you soon!

Want to learn more?

Come to one of our events!

We regularly host online and offline events in which we educate entrepreneurs and (prospective) participants. Leave your contact details, and we will be happy to host you soon!

Join the community

Ambitious leaders across industries use our platform to attract, motivate, and retain talent.

"Thanks to the complete guidance of Sharesquare, the setup of the plan and onboarding of employees went smoothly. The system and its capabilities truly make our employees feel like part of the company."

Ricardo van Dam

Investor, BS Toys

"Sharesquare offers a practical and clear platform for managing participations. The legal knowledge of the team is excellent and takes all worries off your hands, allowing you to implement a good arrangement for your employees in a short amount of time."

Tom Arends

Co-founder & CEO, PEAKS

"Sharesquare's masterclass on virtual shares and the insights into labor law were incredibly valuable. There were loads of networking chances, and big kudos for giving partners their moment to shine. Well done, Sharesquare!"

Kristel Moedt

Co-founder, PeopleMasterminds

"With a Sharesquare virtual share plan, you can optimally reward employees with Share Appreciation Rights. It leads to maximum motivation since the employee can harvest the fruits of his efforts through the company's value increase."

Maurits Grosfeld

Founder, House.nl

Quick answers

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