2020-02-16
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 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

04 June 2020 Coronavirus: business interruption insurance update

If you purchased business interruption cover (BI), you might have insurance to pay losses while you cannot trade. You will need to have one or two of the most common BI extension clauses and cover will depend very much on the wording of that clause.

Read article
04 June 2020 What can our health service learn now from Covid?

It is normal for most organisations to have a business continuity plan that is regularly reviewed, updated and stress-tested to ensure that it is sufficiently robust to deal with pretty much every conceivable disaster scenario.

Read article
04 June 2020 Setting a trend for success fee recovery in 1975 Inheritance Act claims?

In a recently unreported Inheritance (Provision for Family and Dependants) Act 197 claim (‘the Act’), His Honour Judge Gosnell sitting at Leeds County Court made the unusual decision to give an award specifically to part-pay a claimant’s success fee, which was payable by the Claimant as a result her ‘no win, no fee’ funding agreement.

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