The maturation period refers to the period of time during which a company grants employees or investors the right to share their property or equity. This can be done through Stock Options, limited share units (RSU) or other forms of limited capital.
Because the maturation periods are important:
- Aligns the interests : the maturation periods help to align the interests of employees and investors with those of the company, as they will benefit from the growth and success of the company only after a certain period.
- provides liquidity
: the periods of maturation allow employees or investors to sell their actions before the end of the maturation period without incurring significant sanctions.
- Reduces the risk : the maturation periods can reduce the risk for companies, since they are less likely to grant equity to employees with an uncertain time sequence for maturation.
- Improve the loyalty of employees : by binding salary increases and performance bonuses, maturation periods can help preserve the best talents.
Types of maturation periods:
- Three years old : employees receive their net assets after three years of service, at that point the maturation period begins.
- Dress of two years : Employees receive their net assets after two years of service, with a one -off flat rate for maturation.
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Best Practice for maturation periods:
- Clearly communicate the terms of maturation : make sure that employees and investors include the maturation period and all the associated conditions.
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- Take into consideration the maturation times
: the maturation periods may vary according to the size of the company, industry and type of employee. Companies should consider these factors when they set their maturation programs.
By understanding the importance of the accrual period of token sales and investors’ relationships, companies can create more effective shareholding programs that align interests with those of employees and investors.