2020-06-09
Case Studies

Start-up recruiting key talent from larger competitors

Home / Knowledge base / Start-up recruiting key talent from larger competitors

Posted by John Dormer on 02 April 2019

John Dormer - Employee Incentives and EMI Options Lawyer
John Dormer Partner

Business sector: Technology

Turnover: £200k

Shareholder/business goals and challenges

  • Needed to recruit key talent to drive business forwards but with limited cash resources
  • Target employees employed by larger businesses within the same sector who offer greater salary and bonuses
  • Start-up needed to offer share incentives to secure target employees with the prospect of very meaningful upside if the business succeeds

What we did and achieved

  • Set up a tax efficient Enterprise Management Incentive option plan which was used as a key part of the company’s recruitment negotiations
  • All new recruits joined the start-up company from larger more established competitors
  • New employees building up meaningful stakes in the business on meeting certain milestones but without impacting on control of founder shareholders
  • Buy-in cost negligible for new recruits, enabling them to acquire their shares over time and with ultimate returns taxed at only 10%

About the author

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.

John Dormer

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.

Recent articles

12 August 2020 Wright Hassall wins housing association contracts

Leading Midlands law firm Wright Hassall has signed two major deals to supply legal services to the housing association sector which is on an expansion drive to meet rising demand.

Read article
12 August 2020 Wright Hassall helps Helping Hands to move office

A much-loved Leamington charity, The Helping Hands Community Project, has moved into two-storey 4,600 square ft premises on Althorpe Street on a new lease with assistance from leading Midlands law firm, Wright Hassall.

Read article
12 August 2020 Wright Hassall shortlisted for 'Regional Solicitor Firm of the Year'

Wright Hassall’s Private Client Team is one of three law firms shortlisted for the ‘Regional Solicitor Firm of the Year’ (Midlands) at The British Wills and Probate Awards.

Read article
Contact
How can we help?
01926 732512
CALL BACK