What is free entitlement shares in SAP ICM - Incentive and Commission Management (ICM)?

SAP Term: free entitlement shares

• Component: ICM

• Component Name: Incentive and Commission Management (ICM)

• Description: Incentive and Commission Management Remuneration shares that have not yet been disbursed at the point when the process of entitlement and liability transfer is implemented.

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• Key Concepts: 
  Free entitlement shares are a type of stock option that is granted to employees as part of their compensation package. This type of stock option allows the employee to purchase a certain number of shares at a predetermined price, usually at a discount from the current market price. The employee is not obligated to purchase the shares, but if they do, they will benefit from any increase in the stock price. 
  
  How to use it: 
  In ICM Incentive and Commission Management, free entitlement shares are used to reward employees for their performance. The company can set up a plan that allows employees to purchase a certain number of shares at a discounted rate. The company can also set up rules and restrictions on when and how the employee can purchase the shares. 
  
  Tips & Tricks: 
  When setting up a free entitlement share plan, it is important to consider the tax implications for both the company and the employee. It is also important to ensure that the plan is compliant with all applicable laws and regulations. Additionally, it is important to consider how long the plan will be in effect and how often it will be reviewed and updated. 
  
  Related Information: 
  For more information on free entitlement shares, please refer to the ICM Incentive and Commission Management documentation. Additionally, you may want to consult with a financial advisor or tax professional for advice on setting up and managing a free entitlement share plan.