Employee share schemes are not common in Greece. Some relevant legislation was introduced approximately 10 years ago but this deals primarily with employee participation in the profits of their employing company rather than with share-based incentive schemes.

The concept of employee share participation schemes was first introduces into Greek legislation some ten years ago and practice of operating such schemes is not widespread. In the current legal context, many issues concerning the grant of shares from Greek subsidiary companies of foreign parent companies based abroad to their Greek employees through a Stock Option plan is regulated. However, taking into consideration that Greek company and tax legislation governing this institution are at fairly early stage, a number of practical issues cannot be addressed in this legal analysis in a firm and authoritative manner.

The standards which apply to employment relationships and the terms and conditions under which an employee works are laid down within a framework of rules created by the Constitution, laws, collective agreements, internal regulations and custom.

Recent publications in the Greek financial press and in legal magazines prompted us to express our views regarding the implementation of Stock Option Plans in Greece and the possible problems that it may create. Our view is based on the long experience that we have acquired from our involvement in the structure and implementation of a large number of Stock Option Plans by multinational companies in their subsidiary companies in Greece.