Vested Share Options

Everyday Islamic Finance Business and Career Questions
#1

Salaams,

Is it permissable for a person to become a shareholder of a company as an employee through free issued vested share options (that convert to actual shares upon sale). These vested share options are issued as part of the employment contract and remain the employees, regardless if the share options are profitable or not against the strike price at the time of disposal.

Assuming the company operates in a permissable industry and is shariah compliant.

Jzk.

#2

Wa alaykum salaam,

Based on those assumptions, it would be permissible to receive these options. These options should not be traded.

#3

Jzk for the response.

Can I also ask if there would be any zakaat obligations on the vested options.

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