A key consideration for any family business and founder-shareholders is to ensure that the people who are driving the business forward are happy and appropriately incentivised.
If you would like to offer management a path to shares, we can help in creating a structure that works for you and them.
EMI Share Options
Providing an Enterprise Management Incentive scheme can be an effective way for businesses to reward and retain staff by granting them share options in a tax-efficient way. It also allows the shareholders to retain control if the options are framed correctly. We can help with:
- Ensuring the scheme meets the EMI requirements
- Liaising with HMRC on the valuation
- Structuring the scheme appropriately to meet its objectives
Profit Sharing Schemes
We can advise clients on incentivising employees by awarding them a percentage of the company’s profits. Whilst this may not be the most tax-efficient way to reward your management, it is a viable alternative if you are not prepared to offer shares.
If structured correctly, growth shares are a cost-effective and tax-efficient way to provide key members of the management team with access to shares whilst incentivising them to grow the value of the business for their own personal benefit. We can work with you to design a scheme which works for the current owners and the existing management team.