Telecommunication Consultancy
30 employees, London – This fast growing company is a specialist consultant in telecommunications and networks. From the outset, the shareholder directors wanted to create a share owning culture within the company based on superior performance. RM2 implemented an Enterprise Management Incentive plan with option exercises based on stretching profit and turnover targets. RM2 also set up an Employee Benefit Trust to grant the options and acquire shares from existing shareholders on exercises. This has prevented dilution and delivered value to the shareholders. Cross options between the principal shareholders were introduced by RM2 Community members to protect both the Company and shareholders.
French Listed International Diagnostics Group
100 UK employees, Basingstoke – The parent company planned a share offer to its global workforce on advantageous terms. For UK employees, RM2 designed and implemented a HMRC-approved Share Incentive Plan involving employee purchased and matching shares. The Plan offered tax advantages for employees and NIC savings for the company. RM2 gave onsite presentations and provided telephone and email helplines for employees. RM2 also set up a dedicated website to launch the Plan and receive applications, which helped achieve a high take-up level. RM2 acts as Plan trustee and administrator.
Independent Financial Adviser
200+ employees and partners, London and Nationwide – This Company provides independent financial advice to private and corporate clients throughout the UK. The company wished to incentivise its employees, directors and partners through performance-based equity awards. RM2 worked with the company to design and launch a wide range of incentives, including Enterprise Management Incentives, a Deferred Share Purchase Plan and several Unapproved equity plans. RM2 administers the plans for the company and advises on the share-based payment costs to be charged to the accounts under option expensing.
Auto Distributor UK Arm of Overseas Listed Parent Company
2200 UK employees, UK Wide – Again the Overseas Parent Company wished to include its worldwide workforce in a share purchase plan. RM2 was responsible for the design of the plan for UK personnel and continues to carry out the ongoing administration. Employees purchase shares on a monthly basis through the HMRC approved Share Incentive Plan. The employees can also use their annual bonus or part of it to acquire further shares to the £1,500 per annum limit. [Under these arrangements the employees can also track their share plans on a dedicated web-link].
Holiday Tour Company
Executive Share Option Plan – The owner of the Company wished to introduce an incentive plan for his Executives whilst establishing a partial succession plan for himself. RM2 reviewed the HMRC Enterprise Management Incentive and established an Employee Benefit Trust to act as the internal market for the shares. The founder of the Company released shares to the EBT and the options were exercised. RM2 worked with the Company in reviewing the Articles of Association, compiling a valuation for SAV of the Revenue and finalising the details of the EBT and the appropriate transfers.
Further help and information on employee share schemes
For detailed guidance on all aspects of the design, implementation and administration of employee share schemes see "Employee Share Schemes: a Guide for Directors" (2008/09 edition). You can view the Guide online or order a copy here. Or ask for a free consultation.
