Guideline ruling commission on proportionate use of warrants
Belgian ruling commission has just published rulings in which it made explicit in what circumstances the grant of warrants and options (exempted from social security contributions) is not considered to be disproportionate. Reference is made to 20% of the total of fixed and variable salary (benefits in kind excluded) as clearly proportionate.
The following grants of warrants are proportionate:
- Fixed salary of EUR 100,000 gross + variable remuneration of EUR 25.000 gross (either in cash or warrants): 20% of (EUR 100.000 + EUR 25.000=) 125.000 EUR is 25.000 EUR and is the maximum to be converted into warrants.
- Fixed salary of EUR 100,000 gross + variable remuneration of EUR 50.000 gross (either in cash or warrants): 20% of (EUR 100.000 + EUR 50.000=) 150.000 EUR is 30.000 EUR and is the maximum to be converted into warrants.
In any case, this does not jeopardize the right of the employee and the employer to convert parts of the bonus in the pension scheme.
We are following this matter closely and have been involved in a lot of related schemes.
KrisDe SchutterAttorney at law Partner
Kris De Schutter is a partner in our office in Brussels and member of Loyens & Loeff’s Employment & Benefits Practice Group. He has extensive experience in alternative (flexible) remuneration, restructuring and change processes.T: +32 2 700 10 13 E: firstname.lastname@example.org