<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper discloses the situation, specifics, tendencies, and limitations of employers’ adjustment to employee financial participation (sharing shares) in companies in Lithuania. Three main tools are analyzed: the issuance of employee shares (known since 1990); a share granting (effective since 2018); and employee stock options. The empirical part of the paper is based on interviews conducted in 2019 and repeated in 2022–2023 with expert lawyers from Lithuanian law firms, alongside a survey of Lithuanian companies. The following aspects were analyzed: employers’ knowledge of the possibilities of involving employees in company management (activities); instruments used by employers to implement employee financial participation; reasons that prevent successful employee involvement and barriers from the perspective of employees; tax-related issues; and measures that could facilitate greater employee involvement within the company. The research results show that there is a tendency that promotion via shares is becoming more popular and that business culture is slowly evolving. Employee stock options are the most used instrument, surpassing the use of statutory tools to grant shares to employees.</p>
</abstract>

This paper discloses the situation, specifics, tendencies, and limitations of employers’ adjustment to employee financial participation (sharing shares) in companies in Lithuania. Three main tools are analyzed: the issuance of employee shares (known since 1990); a share granting (effective since 2018); and employee stock options. The empirical part of the paper is based on interviews conducted in 2019 and repeated in 2022–2023 with expert lawyers from Lithuanian law firms, alongside a survey of Lithuanian companies. The following aspects were analyzed: employers’ knowledge of the possibilities of involving employees in company management (activities); instruments used by employers to implement employee financial participation; reasons that prevent successful employee involvement and barriers from the perspective of employees; tax-related issues; and measures that could facilitate greater employee involvement within the company. The research results show that there is a tendency that promotion via shares is becoming more popular and that business culture is slowly evolving. Employee stock options are the most used instrument, surpassing the use of statutory tools to grant shares to employees.

Sharing Shares with Employees: Tools and Empirical Evidence from Lithuania

Professor, Institute of Private Law, Mykolas Romeris University

PhD student, Institute of Private Law, Mykolas Romeris University

Baltic Journal of Law & Politics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Sharing Shares with Employees: Tools and Empirical Evidence from Lithuania"}

This paper discloses the situation, specifics, tendencies, and limitations of employers’ adjustment to employee financial participation (sharing shares) in...

Sharing Shares with Employees: Tools and Empirical Evidence from Lithuania

Data publikacji: 26 cze 2024

Zakres stron: 181 - 206

Otrzymano: 30 paź 2023

Przyjęty: 04 kwi 2024

DOI: https://doi.org/10.2478/bjlp-2024-0009

Słowa kluczowe
Employee financial participation, share granting tools, employee stock option, employee shares

© 2024 Virginijus Bitė et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Sharing Shares with Employees: Tools and Empirical Evidence from Lithuania

Data publikacji: 26 cze 2024

Zakres stron: 181 - 206

Otrzymano: 30 paź 2023

Przyjęty: 04 kwi 2024

DOI: https://doi.org/10.2478/bjlp-2024-0009

Słowa kluczoweEmployee financial participation, share granting tools, employee stock option, employee shares

© 2024 Virginijus Bitė et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
Employee financial participation, share granting tools, employee stock option, employee shares