ESOP: Executive Share Option Plan
This is a simple and cost effective way of providing share options to both employees and non-employees such as contractors.
ESOP: About the Executive Share Option Plan
As a share option plan, the Executive Share Option Plan offers selected participants the opportunity to purchase shares in a company at a fixed price.
Individual performance conditions can be designed into the plan, helping to ensure rewards are only distributed when key corporate objective have been met.
It can be used as a stand-alone share option plan, or alongside the tax-advantaged Company Share Option Plan (CSOP) in order to provide top-up awards.
ESOP: Benefits of an Executive Share Option Plan
- Relatively straight forward to set up – this means cost savings for you!
- Promotes retention of key individuals
- Offers share based rewards that can be linked to individual performance conditions
- Current shareholders are not immediately diluted
- Focuses participants to work toward established corporate objectives
ESOP: 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
- 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 Executive Share Option Plan can help your business, why not call Kerrie Willis directly on 0208 949 5522, book a free consultation using the button above, download our fact sheet or email a member of our team!