Document background
Transaction Bonus Agreements are essential instruments in corporate transactions under Austrian law, designed to retain and motivate key employees during critical business events such as mergers, acquisitions, or significant corporate restructurings. These agreements are particularly important when companies need to ensure business continuity and maintain key personnel throughout a transaction process. The Transaction Bonus Agreement specifies the conditions for bonus payment, typically tied to both the successful completion of the transaction and the employee's continued employment. It must comply with Austrian employment law, tax regulations, and social security requirements, while also considering works council rights where applicable. The document is commonly used during M&A activities, IPOs, or other significant corporate events where retaining key employees is crucial for transaction success.
