EMI: Enterprise Management Incentive
The Enterprise Management Incentive (EMI) is a well-established, tax-advantaged share option scheme that can help attract and incentivise key individuals integral to safeguarding company growth.
Although originally designed for fast-growth entrepreneurial businesses, the EMI also has capacity to provide tax-advantaged share arrangements to more established companies.
EMI: About the Enterprise Management Incentive
As a share option plan, the EMI offers selected participants the opportunity to purchase shares at a specified time and price defined by an employer.
Individual performance and retention conditions can be built in, helping to ensure rewards are only distributed when key corporate objective have been met.
Any participant of a qualifying company may be granted tax-advantaged share options with a market value of up to £250,000, subject to an overall company limit of £3 million. The shares must be in an independent trading company that has gross assets of no more than £30 million.
To obtain a more comprehensive understanding of the qualifying criteria and how the scheme can have a positive impact on your business, book a free consultation with a member of our team!
EMI: Benefits of an Enterprise Management Incentive
The EMI is one of the most flexible and tax-advantaged share schemes currently available in the UK, offering a potential tax rate of as low as 10% on any gains.
Since its introduction in 2000, the RM2 team has helped numerous companies to:
- Motivate participants to work beyond short-term goals
- Reward participants on a tax-advantaged basis (Entrepreneurs’ Relief usually available)
- Protect current shareholders from immediate dilution and loss of control
- Promote long-term retention of key employees
- Encourage growth by linking awards to performance conditions
- Provide a framework to include new participants, if required
- Attract top candidates to companies
- Minimal risk for participants
For more detailed information on the benefits and limitations of an EMI, please download our fact sheet, or call 020 8949 5522 to speak with one of the team.
EMI: How we can help
At RM2, we believe in taking a consultative approach to building share plans and finding out precisely what our clients are looking to achieve. This approach helps us to deliver a professional and effective service, helping clients meet their goals and plan for the future. Our highly experienced team are well positioned to guide your company through every stage of the share scheme process, including:
- Strategic review
- Plan design
- Shareholder resolutions
- Articles of association
- Share valuations
- Employee communications
- Plan administration
- Option expensing
- Ongoing support
We have successfully designed, implemented and administered over 700 share plans across a range of sectors, so you can rest assured your plan will be in the best possible hands.
If you would like to find out more about how an Enterprise Management Incentive can help your business, why not call a member of our team directly on 020 8949 5522, request a callback using the button located at the top of the page, download our fact sheet or send an email to email@example.com!