RM2 > Employee Share Schemes > Enterprise Management Incentive (EMI)

Enterprise Management Incentive (EMI)

The EMI is a well-established, tax-advantaged share option plan that can help incentivise key individuals integral to safeguarding the growth of a company.

About the Enterprise Management Incentive (EMI)

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.

Tax-advantaged share options with a market value of up to £250,000 may be granted to a participant of a qualifying company (subject to an overall company limit of £3 million), and the shares must be in an independent trading company that has gross assets of no more than £30 million.

Benefits of an Enterprise Management Incentive (EMI)

The EMI is one of the most flexible and tax-advantaged share schemes currently available in the UK.

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.

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 Kerrie Willis directly on 0208 949 5522, request a callback using the button located at the top of the page, download our fact sheet or send an email to enquiries@rm2.co.uk!