For many different reasons, sometimes a company does not have sufficient funds to remunerate its staff the way it would want to. However, it still needs to be able to attract and retain the best staff in order to achieve a profitable, growing business.
In this case there are several employee equity schemes that provide an opportunity to reward and recognise key personnel. Some are HMRC approved, tax efficient, and beneficial for both the company and its employees.
We have worked with several companies to set up successful employee equity schemes and know how to navigate the strict processes and procedures efficiently and effectively.
Case study
Employee equity scheme
My client was a new, fast-growing company who wanted to recruit top talent but were unable to pay commercial remuneration rates due to cash constraints.
They wanted to enhance their remuneration packages by offering Enterprise Management Incentive share options.
I worked with my client to prepare a company valuation and agree a share price value with HMRC and liaised with lawyers to prepare the scheme rules and option agreements. The end result was that key staff were recruited successfully and tax efficient EMI options were issued.