How can I find the best employee share options for my company?
First, decide on your objectives. Are you looking to align the interests of key executives with shareholders, perhaps prior to a trade sale, MBO or flotation? Do you want to encourage a culture of team work across the whole organisation? Is saving tax or cash important?
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Why should I seek advice from RM2?
RM2 has successfully implemented more than 600 employee share schemes. Unlike other share options advisers, we are not just lawyers or accountants - we are true specialists covering every aspect of share scheme advice including tax, company law, trust law, accounting, valuation and (importantly) we offer full trustee and administration services as well. We are accredited to ISO 9001 for the design and administration of employee share schemes. We offer an initial consultation to any company without cost or obligation.
Click here for more information about RM2's share options.
My company is private - can I offer an employee share scheme?
Yes. If you are planning an exit event such as a trade sale or flotation in due course, this will provide a liquidity event to allow employees to retrieve their gains. If no exit event is planned, you can create an internal market in the shares - this is done through an employee benefit trust. As a private company you can benefit from the same tax and cash advantages as a quoted company.
What approvals does my share incentive plan require?
You will need Board approval and, depending on the nature of the scheme and any existing permissions you may have, you may require shareholder approval as well. RM2 will provide all the necessary Board and shareholder papers and ensure that all statutory filings are correctly made. Some tax advantaged schemes will need to be approved by HM Revenue & Customs before they can be set in motion.
For more information see Share Incentive Plan, SAYE Share Option Plan and Approved Company Share Option Plan.
Could my share scheme's tax advantages be withdrawn?
Parliament can always change the rules. However, all political parties, together with the TUC and the CBI, support employee share schemes. We believe it is very unlikely that tax benefits will be withdrawn from these schemes, and even less likely that benefits would be withdrawn from schemes already running.
How much will it cost?
It is difficult to advise on this until we know what kind of scheme you are looking for. But we do know from survey information that our fees are lower than virtually all other firms working in the same field, even though other advisers provide a less complete service.
How long will it take?
Most employee share incentive plans can be set up in a few weeks. Generally, the key factor governing progress is the timing of the client's internal decisions, such as the dates of Board meetings. If shareholder approval is required this may extend the timescale, particularly if there are large numbers of shareholders. A few employee share schemes require approval from HM Revenue & Customs before they can be operated and this can add several months to the timescale.
If your question is not above why not call us on 0800 043 8150 and speak to someone today. Alternatively email your question to mail@rm2.co.uk
