How much does a valuation of employee participations and options cost? Prices and fees 2026 (Switzerland)

CHF price ranges and the Swiss tax framework (DFTA, SFTA, AHV) for valuing employee shares and options.

Introduction: how much does a valuation of employee participations and employee options cost in Switzerland in 2026?

In Switzerland, the valuation of a single employee participation, whether shares granted to an employee or an employee option, generally falls within a range of CHF 3,000 to 10,000. A management package combining several classes of securities and several beneficiaries falls within a range of CHF 6,000 to 12,000 (Hectelion practice, 2026).

The right budget depends first on the type of participation, its tax treatment and the number of beneficiaries, before the size of the company itself.

Switzerland has no single regime comparable to the French BSPCE. Employee participations are governed by the Federal Act on Direct Federal Taxation (DFTA), clarified by Circular No. 37 of the Swiss Federal Tax Administration (SFTA) and by the wage-determination directives of the AHV (old-age and survivors' insurance). This article sets out that framework, its effect on value, and the steps of an engagement. Convertible bonds and option rights are covered in a separate article, in preparation once it is published: their rules come from the Code of Obligations, not from the DFTA. The methodological differences between France and Switzerland are covered separately.

Definitions: what the terms of this article mean

Employee participation: any right that a company grants to its employees because of their employment relationship. The law distinguishes properly so-called participations, which give access to the capital, from improperly so-called participations, which are simple cash payments (DFTA art. 17a; SFTA Circular No. 37, section 2.3).

Employee option: a right granted to an employee to acquire, during a defined period and at a fixed price (the exercise price), securities of the employer (SFTA Circular No. 37, section 2.3).

Management package: a practice term, not a legal one. It refers to all the participations granted to a management team, often in several classes of securities.

Improperly so-called participation: an expectation of a cash payment, without any security being delivered to the employee (DFTA art. 17a para. 2).

"The following are properly so-called employee participations: a. shares, enjoyment certificates, participation certificates, partnership interests and any other participation that the employer, a parent company or another group company offers to the employee; b. options giving the right to acquire the participations referred to in let. a.", Federal Act on Direct Federal Taxation (DFTA), art. 17a para. 1 (unofficial translation by Hectelion; the official text is in French).

Two reasons make this topic especially relevant in 2026. First, employee participations are becoming a common incentive tool in Swiss SMEs, particularly family firms. Second, their tax treatment is set by law and clarified by the administration: an undocumented value translates directly into income tax and social security contributions.

This article sets out the Swiss legal framework, gives the prices at a glance, explains the treatment of each type of participation, details what drives the cost, looks at the 2026 points of attention, describes the steps of an engagement, compares providers, lists the costly mistakes, and illustrates the points with two worked cases before answering the most frequently asked questions.

The Swiss legal framework: properly and improperly so-called participations

The DFTA distinguishes two families. Properly so-called employee participations (DFTA art. 17a para. 1) give the employee a real stake in the capital: shares, enjoyment certificates, participation certificates, partnership interests, and options giving the right to acquire these securities. Improperly so-called employee participations (DFTA art. 17a para. 2) are mere expectations of cash payments, with no security delivered to the employee.

The table links each type of participation to its tax regime and to its treatment for AHV contributions:

Type of participation	Classification	Time of taxation	Legal basis
Shares granted free of charge or at a preferential price	Properly so-called	Acquisition, whether blocked or not	DFTA art. 17a para. 1 let. a and art. 17b para. 1; SFTA Circular No. 37, section 3
Options that are negotiable and listed on an exchange	Properly so-called	Grant or acquisition	DFTA art. 17b para. 1; SFTA Circular No. 37, section 4.1
Options that are not negotiable or not listed	Properly so-called	Exercise	DFTA art. 17b para. 3; SFTA Circular No. 37, section 4.2
Expectations of cash payments (phantom shares, rights to the increase in value)	Improperly so-called	Receipt of the payment	DFTA art. 17a para. 2 and art. 17c; SFTA Circular No. 37, section 6

This table is a guide. The exact treatment depends on the plan, the articles of association and the employment contract, and must be checked for each grant.

Prices at a glance

Engagement	Model / complexity	Price range	Indicative lead time
Shares granted to an employee	Fair market value at the acquisition date, statutory blocking discount	CHF 3,000 to 10,000	2 to 4 weeks
Non-negotiable employee options	Option model, taxation at exercise	CHF 3,000 to 10,000	2 to 4 weeks
Multi-class management package	Several classes, several vesting tranches, several beneficiaries	CHF 6,000 to 12,000	3 to 6 weeks
Expectations of cash payments (phantom shares, rights to the increase in value)	Value of the payment at each payment date	CHF 3,000 to 10,000 per payment date	2 to 4 weeks, then updates

Ranges observed by Hectelion in 2026 for engagements in Switzerland, excluding any additional financial due diligence. The number of beneficiaries, classes of securities and payment dates, more than the size of the company alone, drives most of the price difference.

Employee shares granted: taxation at acquisition

Under DFTA art. 17b para. 1, benefits in cash arising from properly so-called employee participations, other than non-negotiable or unlisted options, are taxable as employment income at the time of their acquisition. The taxable benefit is the fair market value of the participation, less any acquisition price paid where applicable.

The consequence for the valuation is direct: the fair market value of the securities granted must be documented at the acquisition date. It sets the employee's taxable base and, depending on the case, the company's charge. An insufficiently reasoned value exposes the company to a correction during a tax audit.

Blocking discount: a statutory table, applied in compound form

This is the most important point for a French reader. DFTA art. 17b para. 2 provides that, when calculating the taxable benefit of employee shares, blocking periods are taken into account through a discount of 6% per year of blocking, limited to ten years. SFTA Circular No. 37, in its version dated 30 October 2020, sets out the method: the reduced fair market value is calculated as 100 / 1.06ⁿ, where n is the blocking period, partial years being taken pro rata temporis.

The discount is therefore not linear. A one-year blocking period gives a discount of 5.66%, a five-year period 25.27%, and a ten-year period 44.16%, not 60% as a simple addition would suggest.

This tax discount must not be confused with the value of the securities. The valuation first determines the fair market value, without discount. The blocking discount is then applied to determine the tax. The report must distinguish the two steps: the documented fair market value, then the statutory discount with the period retained. Nor is it an illiquidity discount in the valuation sense, a topic addressed in our publication on premiums and discounts.

Worked example: from fair market value to the contribution base

Consider a share granted free of charge to an employee, whose fair market value at the acquisition date is CHF 10,000, subject to a variable blocking period. The table applies the formula of SFTA Circular No. 37: reduced fair market value = 10,000 / 1.06ⁿ, partial years taken pro rata temporis.

Blocking period	Discount	Reduced fair market value (CHF)	Discount (CHF)
0 year	0%	10,000.00	0.00
1 year	5.66%	9,433.96	566.04
2 years	11.00%	8,899.96	1,100.04
3 years	16.04%	8,396.19	1,603.81
5 years	25.27%	7,472.58	2,527.42
10 years and more	44.16%	5,583.95	4,416.05

Where the employee pays nothing for the share, the taxable base is the reduced fair market value. Where the employee pays an acquisition price, the base is the positive difference between the reduced fair market value and that price (SFTA Circular No. 37, section 3.3; DFTA art. 17b para. 1). The period n is the number of years remaining at the valuation date. Example: a share worth CHF 10,000, blocked for three years, bought by the employee for CHF 1,000, gives a base of 8,396.19 - 1,000 = CHF 7,396.19. If the price paid exceeds the reduced fair market value, the base is nil.

AHV, AI, APG and AC contributions are calculated on the same wage-determination base (DSD directives, section 3.2). The example therefore gives the contribution base of a share granted free of charge, subject to the three exceptions set out below and to the rate in force, which this article does not detail.

AHV contributions: the same rules, three exceptions

The AHV wage-determination directives (DSD, state at 1 May 2026, section 3.2) apply the same rules to social security contributions: the same fair market value, the same time of acquisition and the same discount of 6% per year of blocking, capped at 44.161%.

Three distinctions matter. Free shares granted to shareholders who are also employees are not wage-determining income. Improperly so-called participations, such as phantom shares paid in cash, are subject to contributions when the payment is received. Non-negotiable options are subject to contributions at sale or exercise. A single grant can therefore be treated differently depending on its nature, so both income tax and contributions must be checked before the plan is finalised.

Employee options: taxation at exercise

For non-negotiable or unlisted employee options, DFTA art. 17b para. 3 provides for taxation at exercise: the taxable benefit equals the fair market value of the share less the exercise price. For negotiable options listed on an exchange, taxation occurs at grant, under SFTA Circular No. 37, section 4.1.

Switzerland has no regime that mirrors the French BSPCE. A Swiss option plan is therefore modelled as an option on shares, with taxation deferred to exercise and a fair market value to document at that date. The dilution created at exercise must be included in the valuation. Our practice on these plans is set out in our publication on the BSPCE and the management package.

Cash expectations: valuing an amount linked to the value of the company

An improperly so-called participation, such as a phantom share or a right to the increase in value paid in cash, grants no security. It is taxable when the payment is received (DFTA art. 17c). Its amount depends on the value of the company at each payment date, which requires a periodic valuation, not a single valuation at grant.

This mechanism is often chosen when the founder wants to associate an employee with the creation of value without transferring capital. The engagement then covers the indexation formula, the reference date and the value at each payment date. The payment terms and their link with the annual result, in particular where profit sharing is agreed by contract, are covered in a separate article.

Good leaver, bad leaver: what happens to an unvested participation when an employee leaves

The shareholders' agreement or the plan rules that accompany an employee participation almost always contain an early-exit clause, distinguishing the good leaver, who leaves for a legitimate reason, from the bad leaver, who resigns or is dismissed for serious misconduct. These clauses are contractual and must be reconciled with the articles of association.

For a security still subject to a vesting condition, a bad leaver generally loses the unvested rights, while a good leaver keeps the rights pro rata to the period already elapsed. For the valuer, this clause adds an option to model whenever the engagement covers a portfolio of ongoing plans.

What drives the price: tax regime, beneficiaries, data, urgency

Five factors explain most of the price difference between two engagements:

The type of participation and its regime: a share is valued at fair market value, an option requires an option model, and a cash expectation must be recalculated at each payment date.
The number of beneficiaries and classes of securities: each class and each group of beneficiaries multiplies the assumptions and the allocation calculations.
The availability of data: up-to-date articles of association, shareholders' agreement, plan rules and cap table speed up the engagement.
The documentation expected by the administration: a report for the auditor or the SFTA costs more than an internal calculation.
Urgency linked to a grant, a payment date or a closing increases the fees.

Flat fee or time-based billing: how an engagement is billed in Switzerland

Most engagements are billed as a flat fee once the scope is fixed upfront: number of beneficiaries, classes of securities, grant dates and assumptions. Time-based billing applies when the plan is still being built. Time-based fees are generally capped by a budget agreed in the engagement letter.

Why value each instrument, and in which context

Share granted to an employee

Why value it: the fair market value at the grant date sets the income tax base of the employee (DFTA art. 17b para. 1) and the AHV contribution base (wage-determination directives DSD, section 3.2). Without a documented valuation, the grant cannot be justified to the administration.

In which context: a family SME that wants to associate employees with the capital, a broad incentive covering a whole team, or a gradual transfer of capital to employees.

Non-negotiable employee option

Why value it: taxation occurs at exercise, on the market value of the share less the exercise price (DFTA art. 17b para. 3). The relevant value is therefore the value at the exercise date, not at the grant date, and the model must take the vesting period into account.

In which context: key managers whom the company wants to retain over several years, in an unlisted company where the option cannot be traded.

Negotiable option listed on an exchange

Why value it: it is taxed when it is granted, on its market value (SFTA Circular No. 37, section 4.1). The value to document is therefore the market value at that date.

In which context: a listed company. This case is rare for an unlisted company.

Cash expectation: phantom shares, rights to the increase in value

Why value it: the amount paid depends on the value of the company at each payment date. That amount is taxed when received (DFTA art. 17c) and serves as the basis for contributions. A value is therefore needed at each payment date, calculated under the contractual formula.

In which context: a founder who wants to associate an employee with the creation of value, without transferring capital or bringing in a new shareholder.

Multi-class management package

Why value it: when several classes of securities and several beneficiaries coexist, the value must be allocated among the classes and among the beneficiaries. Each instrument remains subject to its own tax regime, which requires a separate calculation per instrument.

In which context: an LBO or the entry of a minority investor, when management receives different securities depending on its role, or when an exit is considered.

Participation, option or expectation: which tool for which need

These three tools serve different objectives, even though their valuation fees can be comparable.

Tool	Main objective	Typical context
Shares granted to an employee	Associate with the capital, without price risk at grant	Family SME or fund-controlled company, broad incentive
Employee options	Align the employee with future growth in value	Management package, key managers
Cash expectations	Reward value creation without transferring capital	Founder who wants to associate without dilution or a new shareholder

Hectelion pricing: fees adjusted to the real complexity

At Hectelion, fees for an engagement on employee participations are adjusted to the real complexity of the file. A share granted to one employee falls at the lower end of the range, while a multi-class, multi-beneficiary management package falls at the upper end. The methodology follows the standards of the International Valuation Standards Council (IVSC), with economic independence from traditional financial intermediaries. Each quote details the number of beneficiaries, the applicable tax regimes and the documentation produced. For more complex instruments, Hectelion works through its financial instrument valuation service and, for companies, its business valuation service.

Points of attention in 2026: which versions of the law apply

SFTA Circular No. 37 is cited in its version dated 30 October 2020. The AHV wage-determination directives are cited in their version effective 1 May 2026. A grant must be classified under the version applicable on its date.

Fedlex indicates amendments to the DFTA at later dates (2027 to 2029) for articles 17a, 17b and 17c. These dates must be checked at the time of each engagement.

Timeline and steps: from scoping to the valuation report

Signature of the engagement letter and scoping of the perimeter: beneficiaries, types of participation, grant dates.
Submission of documents: articles of association, plan rules, employment contracts, shareholders' agreement and cap table.
Tax classification of each participation under the DFTA and SFTA Circular No. 37.
Draft report setting out the fair market value, the blocking discounts and the assumptions used.
Presentation of the draft report and discussion with the client and, where relevant, the auditor.
Incorporation of the corrections and additional information requested.
Issue of the final valuation report.

The final report then documents the fair market value used for the employee's taxation and AHV contributions, and supports the company's accounting charge.

Comparing providers: large firms, boutique firms, online platforms

Three categories of providers operate in this market, each with legitimate use cases.

Large firms have dedicated teams and suit large transactions. Independent boutique firms, of which Hectelion is one, offer responsiveness suited to SMEs and mid-sized companies, with economic independence from traditional financial intermediaries.

Automated online platforms can produce a quick first calculation for a simple share, useful for internal use, but they reach their limits as soon as a plan combines several classes, vesting conditions or tax rules that need to be qualified.

Why choose Hectelion for your valuation of employee participations

Six concrete points set Hectelion apart from other providers:

A practitioner's view, not only a theoretical one: before valuing employee plans, Aristide Ruot founded companies and structured financings; that experience informs every assumption. His research covers business valuation and real options in his PhD thesis (CY Cergy Paris University, 2024).
Tax qualification before the calculation: each participation is mapped to its DFTA regime, to SFTA Circular No. 37 and to the AHV directives before any valuation.
A budget that follows the real complexity: a single share does not cost the same as a multi-class management package.
One team from plan to closing: valuation, structuring and due diligence are handled by the same contacts.
No link with the funds or intermediaries involved: Hectelion's fee does not depend on any party to the underlying transaction.
A timetable fixed in the engagement letter: the report deadline is set at scoping and kept.

Point of vigilance: before signing an engagement letter, ask your valuer who pays them and since when they have worked with the parties to the transaction. A report produced by a provider linked to the employer loses part of its probative force before the tax administration.

How to reduce the cost of your valuation without losing defensibility

Prepare the plan rules and the articles of association early, to avoid back-and-forth billed on time spent.
Group all the participations of the same grant in one engagement, rather than mandating separately for each beneficiary.
Stabilise the vesting conditions and the leaver rules before the engagement.
Anticipate the grant and payment dates at scoping.
Mandate a single provider for all the instruments of the same plan.

None of these levers reduces the depth of the analysis or the documentation of the assumptions, which is the only condition for the report to hold up before the SFTA, the AHV or an auditor.

The 5 costly mistakes

Mistake 1: applying a linear blocking discount

The 6% per year blocking discount is applied using the formula of SFTA Circular No. 37 (100 / 1.06ⁿ). A simple addition overstates the discount: ten years give 44.16%, not 60%.

Mistake 2: confusing fair market value with the value used for tax

The valuation determines the fair market value. The blocking discount is a tax table applied afterwards. Presenting the discount as a market value weakens the report.

Mistake 3: transposing the French regime without checking Swiss law

The French BSPCE and AGA have no exact equivalent in Switzerland. Carrying over their caps, holding periods or taxation point into a Swiss plan exposes it to a tax correction on audit.

Mistake 4: ignoring AHV contributions

Contributions follow rules close to income tax, but with three exceptions, in particular for free shares granted to employees who are also shareholders. A plan documented only for income tax may be incomplete.

Mistake 5: valuing a cash expectation only once

A payment linked to the value of the company must be recalculated at each payment date. A single valuation at grant does not cover later payments.

Case 1: free shares granted to 60 employees of a Swiss family SME, valued at CHF 4,500

Case constructed for illustration, based on observed market practice.

Company L SA, a mechanical components manufacturer in French-speaking Switzerland. More than twenty years in existence, family shareholding. The company grants shares to 60 employees, with a two-year vesting condition followed by a one-year blocking period.

The fee is CHF 4,500, within the range of CHF 3,000 to 10,000 for a single participation, given a simple cap table and a single accounting framework. The engagement determines the fair market value at the grant date, applies the statutory blocking discount under DFTA art. 17b using the Circular formula, and documents the AHV contributions.

Case 2: management package for four executives of a Swiss company, valued at CHF 8,500

Case constructed for illustration, based on observed market practice.

Company N SA, a software publisher in German-speaking Switzerland. A minority fund has come into the capital and wants to associate four executives with growth. The plan combines non-negotiable options with deferred exercise and shares granted at the outset, across two classes of securities.

The fee is CHF 8,500, within the range of CHF 6,000 to 12,000 for a multi-class management package, because of the coordination between the fund and the beneficiaries. The engagement qualifies each instrument, models the options at exercise and documents the fair market value of the shares at grant.

FAQ: the 12 essential questions on the price of valuing employee participations in Switzerland

Introduction: what to remember before the questions

The price of a valuation depends first on the type of participation and its tax regime, before the size of the company. The questions below answer the most frequent questions from founders, auditors and beneficiaries in Switzerland.

Q1: How much does a valuation of employee participations cost in Switzerland?

Between CHF 3,000 and 10,000 for a single participation, and between CHF 6,000 and 12,000 for a multi-class, multi-beneficiary management package (Hectelion practice, 2026).

Q2: How much does the valuation of a share granted to an employee cost?

Between CHF 3,000 and 10,000, the valuation covering the fair market value at the acquisition date and the statutory blocking discount.

Q3: How much does the valuation of an employee option cost?

Between CHF 3,000 and 10,000 for a single option, depending on the option model chosen and the exercise date to be documented.

Q4: What is the blocking discount rate in Switzerland?

DFTA art. 17b para. 2 provides a discount of 6% per year of blocking, limited to ten years. SFTA Circular No. 37 applies it using the formula 100 / 1.06ⁿ: 5.66% for one year, 44.16% for ten years.

Q5: Do AHV contributions follow the same rules as income tax?

Largely yes: the same fair market value, the same time of acquisition and the same discount. Three exceptions exist, in particular for free shares granted to employees who are also shareholders.

Q6: What is the difference between a granted share and an employee option?

A share is taxed at acquisition on its fair market value. A non-negotiable option is taxed at exercise, on the value of the share less the exercise price.

Q7: Is the quote for valuing employee participations negotiable?

Reducing the depth of documentation lowers the quote, but the tax administration and auditors examine the assumptions closely. Lighter documentation can lead to a correction and further requests.

Q8: Who commissions the valuation of an employee plan?

Usually the company that grants the participations, at the request of the board or of the controlling fund. The report must nevertheless be usable by the employee and by the administration.

Q9: Does the valuation count as a company expense?

Valuation fees are in principle a company expense. Their accounting and tax treatment must be confirmed with the fiduciary or auditor before the engagement.

Q10: Must a participation be revalued at each financial year-end?

A granted participation is valued at its acquisition date. A cash expectation, however, must be recalculated at each payment date.

Q11: How long does it take to value a plan of participations?

Two to four weeks for a single participation, and three to six weeks for a multi-class management package, depending on the availability of the articles of association and the plan rules.

Q12: How do I choose a valuer for an employee participation?

Check the valuer's independence from the employer and from the investors, their ability to qualify each instrument for tax under the DFTA, and whether the report includes complete documentation of the assumptions.

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Conclusion: the price of a valuation depends on the tax regime and the number of beneficiaries

The cost of an engagement on employee participations in Switzerland reflects the type of participation, its tax regime, the number of beneficiaries and the documentation the administration expects. For a single participation, the range of CHF 3,000 to 10,000 covers most files; a multi-class management package falls within CHF 6,000 to 12,000.

Comparing quotes means comparing identical tax qualifications and verified calculation bases, not just amounts, exactly as for any business valuation engagement.

Summary of the article

A valuation of employee participations in Switzerland costs between CHF 3,000 and 10,000 for a single participation, and between CHF 6,000 and 12,000 for a multi-class management package.

Swiss law does not use the BSPCE: it distinguishes properly so-called participations, subject to the DFTA (art. 17a and 17b), and improperly so-called participations, taxed on receipt (art. 17c). The 6% per year blocking discount, limited to ten years, is applied using the formula 100 / 1.06ⁿ of SFTA Circular No. 37. AHV contributions follow close rules, with three exceptions under the DSD directives. The two worked cases illustrate this: CHF 4,500 for free shares granted to 60 employees of a family SME, and CHF 8,500 for a management package of four executives.

Hectelion carries out valuations of employee participations for Swiss companies, in full independence from funds and traditional financial intermediaries.

Sources

The official texts of the Federal Act on Direct Federal Taxation, of SFTA Circular No. 37 and of the AHV directives are published in French and German. Titles in English are unofficial translations by Hectelion.