Employees and employers in Denmark can decide on the terms for stock option schemes when an employee leaves a job, regardless of the circumstances of the termination. The changes feature in the revised Danish Stock Option Act, which applies from 1 Jan 2019 to new schemes.
Prior rules distinguished between “bad leavers” (those who resign) and “good leavers” (those who are dismissed). Employees who left their jobs lost options and warrants, but if the employer terminated the employment contract, the employee retained unexercised stock options and a proportionate share of future allocations. These restrictions no longer apply, giving employers and employees more options for setting terms. For instance: