Opti Plans

A win-win solution

Optimization of variable pay through option plans

The pay-out of classic bonuses is heavily taxed in Belgium. The story is quite different if you choose for options instead of cash because options are not subject to social security contributions.

The company will buy these options from Optiniti and grant them to its employees free of charge. After acceptation after the blocking period, beneficiaries can sell their options in order to receive the cash on their bank account.

Short Term Options (warrants)

Short-term options or warrants give beneficiaries the right (not the obligation) to buy an underlying share at a predefined price (strike price) for a certain period of time (10 years). This type of options has a limited blocking period of 8 hours.

A short-term option or warrant is an optimization in terms of social security contributions. It has a short blocking period of 1 day. This means that short-term options can be sold quite quickly.

There is no obligation to sell.

Limited market risk
Optimization in terms of social security contributions

Long Term Options

Long-term options give beneficiaries the right (not the obligation) to buy an underlying share at a predefined price (strike price) for a certain period of time (10 years). This type of options has a blocking period of 1 year.

A long-term option plan, on the contrary, is not only an optimization in terms of social security contributions but also in terms of witholding tax since a lower Benefit in Kind will be taken into account, resulting in a lower tax amount to be paid.

Market risk for 1 year
Optimisation in terms of social security contributions
Optimisation in terms of witholding tax

Cash Bonus

No market risk
Social security contributions are applicable
Witholding tax 53.5%

Short Term Options

Market risk of minimum 8 hours
No social security contributions
53.5% tax on Benefit in Kind

Long Term Options

Market risk of minimum 1 year
No social security contributions
53.5% tax on lowered Benefit in Kind

1. No social security contributions

Thanks to the law of March 1999 options are exempt from social security contributions. And that counts for both employer and employees!

2. Easy implementation

Optiniti's experienced team takes care of the entire process so you can focus on your business.

3. Win-win!

Both company and employees benefit from these solutions. Employees have a chance to obtain a higher net amount and companies save money implementing the solution.

The result? A higher net amount for beneficiaries.

Optiniti is ready to start optimizing the variable compensation of your employees.