Tax stock options when sold, not when exercised

Europe should change its tax policy on stock options to tax them only when sold, not when exercised, so that it can compete globally in attracting top talent and entrepreneurs. Taxing stock options at the point of exercise creates significant financial pressure for employees and founders, who may not have liquid assets to cover the tax. This discourages risk-taking, limits the appeal of startup equity, and ultimately stifles innovation.

Aligning taxation with when gains are realized (at the point of sale) would better reflect actual income, reduce financial risk, and level the playing field with countries like the US, which already implement such policies. This reform would means Europe can attract the top talent in Europe and worldwide to launch and join startups in Europe.