VSOP models: Flexible employee participation in start-ups

A Virtual Stock Option Plan (VSOP) offers an innovative form of employee ownership by granting virtual options that can be converted into monetary payouts upon certain events such as a company sale. VSOPs allow start-ups to motivate their teams without direct capital dilution and to participate in the company's success by simulating the benefits of stock options. This type of employee participation is particularly attractive for young companies that want to preserve their liquidity while promoting a performance-orientated and success-based corporate climate.