Why Share Plans and Incentives?

A well-structured reward system can provide a competitive edge. Efective share schemes can encourage employees to stay with the company and contribute to its success. Your approach will depend on your current stage of development and growth strategy.

Key Considerations

Before choosing a scheme, consider:

• Commercial Viability: Does the proposal make commercial sense?
• Share Distribution: Will you gift the shares or require employees to pay full value?
• Employee Motivation: Are employees interested in the long-term future of the company, or is immediate cash reward their main motivation?
• Growth Goals: Will employees understand your goal to grow the company’s value for a future sale?
• Job Security: Are employees more concerned with job security?
• Company Valuation: What is your company’s value to a potential new shareholder?

Aligning the goals of the employer and employee is crucial for a scheme to succeed. We can help you navigate these considerations.

Types of Schemes

Share schemes are classified as tax-advantaged or non-tax-advantaged. Tax-advantaged schemes, recognized by legislation, ofer benefits like exemptions from income tax and national insurance.

At Biz Associates Ltd, we assist in evaluating the implications of each scheme to help you select the one that best suits your needs.