Europe based entrepreneurs and executives want their startups to be on par with American startups when it comes to stock options.
They are calling on local governments in Europe to change laws there to allow startups to make stock options more attractive then they are now, so they can better compete with American startups, where stock options are one of the most coveted benefits for their employees.
About 30 CEO’s of Euro-based startups, including TransferWise, Blablacar, Funding Circle, Ltd and Taxify, signed an open letter calling for these changes in the local level to be made to make offering stock options a less complicated experience than it is now.
“Without delay, we call on legislators to fix the patchy, inconsistent and often punitive rules that govern employee ownership,” stated the letter. They are also calling for the deregulation of nonvoting shares, which lets owners deal options to employees without seeding over company control.
The CEO’s say that taxes levied on stock options start when new hires begin working at the startup, not after they leave the company or it shuts down, leaving the employee with a hefty tax bill. Moreover, Europe based rules put the country at a competitive disadvantage against U.S. startups which have little such restrictive rules.
The signers of the letter are requesting more CEO’s sign on to it before it’s forward to policymakers this January.