Equity incentives

UK Employee Ownership Index

On the page in the link below we provide a practical step towards demonstrating that employee-owned businesses produce good, long-term shareholder returns.

Further information about UK Employee Ownership Index >

Even in difficult economic conditions, employers need to attract and retain individuals to ensure their business succeeds. We assist clients in structuring and implementing appropriate remuneration solutions using shares and options to help them meet that goal.

Our approach is to offer highly focused and commercial advice based on the needs of your business. We draft documents to implement an incentive plan in as straightforward a style as possible, and seek to explain often complicated tax advice in a way that you can understand.

Our service

Tax advantaged plans

We advise on the following full suite of share plans that attract specific tax reliefs:

• Company Share Option Plans (CSOPs)
• Enterprise management incentive (EMI) arrangements (to include either one off option grants or a formal plan)
• Save As You Earn (SAYE) plans
• Share Incentive Plans (SIPs)

Listed companies

We have significant experience in acting for companies listed on the AIM Market. We also act for companies listed on the Official List and PLUS.

In addition to all the tax advantaged plans, we advise on and implement the following plans for listed companies:

• deferred bonus and matching share plans
• long-term incentive plans (LTIPs) and performance share plans
• joint share ownership plans
• restricted stock units
• stock appreciation rights 

Start ups

We provide advice to start up businesses on how best to structure their founders' equity, including the tax implications of the employment related securities regime and the impact of making joint elections. We can ensure that the initial equity is properly structured following incorporation to provide for option pools and further equity to be offered to employees and other individuals.

SMEs and venture capital backed private companies

We advise on the most appropriate form of share option plan and share purchase plan for private companies that are either owner managed or backed by venture capital, business angels or other private investors.

Transactions

We advise clients on the most effective and tax efficient way to deal with their existing share plans on M&A transactions (including public takeovers and public to private sales), flotations and management and employee buyouts.

Employee benefit trusts

We draft the documents required to set up employee benefit trusts, both onshore and offshore. We advise trustees on their trustee obligations in connection with corporate transactions. We also have experience of winding up trusts and dealing with the distribution of residuary assets to beneficiaries.

International share plans

We are able to advise on and implement the roll out of share plans globally, using lawyers in our European offices, and our network of established contacts in other jurisdictions. Advice includes plan design, regulatory and securities issues, tax, corporate governance and compliance, employment and data protection.

Share valuations

We provide a share valuation service for private companies and regularly negotiate and agree favourable valuations with HMRC's valuation team as part of the process of implementing tax advantaged share plans (including EMI).

Advice to individuals

As well as our advice to UK and overseas corporates, we work closely with our employment team in advising senior executives and other key employees, notably in the financial services sectors, on their entry and exit remuneration packages.