2020-09-30
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

20 October 2020 Setting up an EMI scheme for your company

Over 12,000 companies across the UK use an EMI scheme (Enterprise Management Incentive) as a way of attracting, retaining and motivating their key employees. Our guide covers all the steps to set up your EMI scheme.

Read article
16 October 2020 Sales and leasebacks and the changes to the planning use classes order

We're covering just two topics very different to each other but both in their own way creatures of this pandemic which is truly dominating our lives. Those topics are sales and lease backs and the recent changes introduced to the planning use classes order

Read article
16 October 2020 Co-habiting couples - How much protection do you have?

It is becoming more and more common for couples to live together and start a family without getting married or entering into a civil partnership. Until the law catches up in this area, cohabiting couples need to be aware of their limited legal rights.

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