AIM listed company refreshing existing share plans

Business sector: Technology

Turnover: £5m

Shareholder/business goals and challenges

  • Incentivise and retain key employees and directors
  • Improve tax efficiency offered by tax inefficient existing share plans
  • Ensure compliance with current investor protection guidelines

What we did and achieved

  • Implemented new Enterprise Management Incentive share option plan
  • Management returns capable of being delivered with only 10% tax cost
  • Compared with current plans, potential tax saving of up to 37% for management and 13.8% for the company
  • Plan designed to take account of current best practice and shareholder guidelines

About the author

John Dormer Partner

John specialises in employee incentive work and regularly provides advice on the structuring, implementation, maintenance and vesting of management and employee incentive arrangements to both UK and overseas companies of varying sizes.