Belgian ruling commission has just published rulings in which it made explicit in what circumstances the grant of warrants and options (exempted from social security contributions) is not considered to be disproportionate. Reference is made to 20% of the total of fixed and variable salary (benefits in kind excluded) as clearly proportionate.
The following grants of warrants are proportionate:
- Fixed salary of EUR 100,000 gross + variable remuneration of EUR 25.000 gross (either in cash or warrants): 20% of (EUR 100.000 + EUR 25.000=) 125.000 EUR is 25.000 EUR and is the maximum to be converted into warrants.
- Fixed salary of EUR 100,000 gross + variable remuneration of EUR 50.000 gross (either in cash or warrants): 20% of (EUR 100.000 + EUR 50.000=) 150.000 EUR is 30.000 EUR and is the maximum to be converted into warrants.
In any case, this does not jeopardize the right of the employee and the employer to convert parts of the bonus in the pension scheme.
