Tantième
Profit share
A tantième is a profit share or bonus granted to directors or supervisory directors of a company, often calculated as a percentage of the profits.
A tantième constitutes a form of variable remuneration for directors and supervisory board members of a company. It consists of a share in the profits, distributed after adoption of the annual accounts. This mechanism encourages alignment with the profitability of the enterprise.
Under Dutch corporate law, the tantième is governed by Book 2 of the Dutch Civil Code. In the case of public limited companies (N.V.) and private limited companies (B.V.), the articles of association or a shareholders’ resolution may provide for the award of tantièmes. Its relevance lies in aligning the interests of management with those of the shareholders.
In practice, a tantième is typically determined by the general meeting on the proposal of the supervisory board. This may give rise to discussions concerning its quantum and calculation, particularly in listed companies where transparency requirements apply.
“The shareholders have resolved to award the directors a tantième equal to five per cent of the profits.”
Need legal advice?
Schedule a free consultation with one of our specialists