Labour and Employee Benefits Handbook 2006/07
Volume 2: Employee Incentives
Country Q&A
Mexico
Raúl Moreyra, Goodrich Riquelme y Asociados,
Note to author: Please confirm that the following details are correct for our
contributor contacts page:
Mexico
Goodrich Riquelme y Asociados
Raúl Moreyra
T +52 55 5525 6167
F + 52 55 5525 1227
E rmoreyra@goodrichriquelme.com
W www.goodrichriquelme.com
1.
Is it common in your jurisdiction for employees to be offered participation in an
employee share plan, involving either the grant of share options or the purchase
of shares?
It is common practice for multinationals to offer participation in an employee share
plan to employees sent from abroad to work in a Mexican company. Employee share
plans are common practice only in Mexican companies which are subsidiaries of
foreign corporations. [Both share options and plans involving the purchase of
shares are used]. Note to author: Are employee share plans common in Mexican
companies?
2.
Is it lawful to offer participation in an employee share plan where the shares to
be acquired are shares in a foreign parent company?
There are no restrictions on offering shares in a foreign parent company under an
employee share plan.
3.
What are the main types of plans available? For each plan, please set out its
main features, including any tax advantages available to participants, and
provide an indication of its popularity.
Share option plan
Note to author: Which types of company can offer this plan (for example, do
they have to be listed or not under the control of another company)? Is it a
discretionary plan or must it be offered to all employees on the same basis?
All companies can offer this plan whether or not they are listed or under the control of
another company. The plan does not have to be offered to all employees.
Under this plan, employees are given a right to acquire a specified number of shares
and the purchase terms are beneficial for employees because the shares