Structuring an Employee Stock Option Plan (ESOP) in ADGM

To compete with global tech giants for engineering and executive talent, MENA startups must offer equity. An Employee Stock Option Plan (ESOP) is the standard vehicle for this, but structuring it incorrectly can lead to massive tax liabilities for your team.

ADGM provides the perfect jurisdiction for ESOPs because English Common Law allows for highly customizable vesting schedules and cliff periods. Nomux automatically generates ADGM-compliant ESOP agreements, pools your option shares, and provides a portal for your employees to track their vested equity in real-time. A standard startup should reserve 10% to 15% of its initial equity pool specifically for future hires.