20. August 2024
The number of newly founded companies that involve employees with company shares is growing. A law has helped to simplify the process. However, it is still not really easy.
Startups in Germany are getting their employees more and more involved in the company. Currently, 44 percent say they give employees a stake in their company, compared to 38 percent a year ago. A further 42 percent can imagine employee participation in the future. Only 6 percent rule this out for the future.
These are the results of a survey of 172 tech startups commissioned by the Digital association BitkomThe Future Financing Act came into force at the beginning of the year, making employee share ownership more attractive in Germany. “Startups usually cannot pay top salaries, but they can allow employees to participate in the financial success of the often fast-growing companies,” says Bitkom President Ralf Wintergerst.
Startups most frequently opt for participation in the form of virtual shares (36 percent), followed by share options and real shares, each with 6 percent. Only in a quarter (24 percent) of startups that involve employees do everyone get something. In 41 percent, managers and other employees are involved, and in 30 percent, only managers are involved.
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