For private equity and venture capital investors, analysing employee stock ownership plans has long been a crucial part of reviewing potential transactions. While ESOPs are a tool for incentivising employees, they are also a potential source of disputes and have considerable financial implications. A new ruling by the Federal Labour Court on 19 March 2025 brings significant changes to the requirements for such schemes.
In an article for VC Magazin, Dr Thomas Derlin, lawyer at GSK Stockmann, explains the resulting risks and how investors can respond now.
