Employee Share Schemes & Incentives

Employee share incentive schemes aren’t just for big businesses: our clients in this area include start-ups and owner-managed companies, as well as large organisations backed by private equity and those listed on the FTSE 100. A good scheme has many benefits: it helps the business to recruit and retain good staff; encourages employees to take a long-term view; aligns employees’ interests with those of the owners; and can be a tax-efficient way to reward people.

To achieve all those benefits, though, many things need to be properly handled. Correct design and implementation is key to ensuring that the scheme is highly effective, both on Day One and for the foreseeable future. Effective ongoing management includes dealing with grants, vestings, and people leaving the business. Evolving your arrangement to adapt to changing circumstances such as the business growing is also essential, especially if that involves going international. We help our clients with all of this, often working with our colleagues in the Corporate Finance, Employment, Pensions and Tax teams. We also advise on other issues such as tax, governance, shareholder engagement, and the impact of big events like an asset sale or IPO. These are all easier to deal with if the scheme is well designed and managed at the outset.