Topical discussions about employee ownership and employee share plans
Despite the unfortunate connotations with the “John Major” political era, as Parliament has been dissolved, we felt it was a good time to go “back to basics”, and explore the fundamental benefits, potential pitfalls, and overall reasoning behind establishing an employee share scheme.What is an...
When you’re setting up a share scheme for employees, one of the first questions you’ll want to ask is whether you should offer direct shares or share options. What are the key differences between shares and options? A quick summary is set out below: A Share gives...
Fast growing entrepreneurial business that implement Enterprise Management Incentive (“EMI”) share options are very frequently the same businesses looking for external funding from venture capitalists (“VC”), or seeking investment from individuals under the tax-advantaged Enterprise Investment Scheme (“EIS”). But how do these work together? Here are...
In certain circumstances, making changes to an existing Enterprise Management Incentive option can culminate in the removal of all the tax benefits usually attaching to EMI. An EMI option is granted by way of an option agreement – so it forms a contract between the...
Companies that wish to grant Enterprise Management Incentive (“EMI”) share options need to meet various tests to qualify for the tax advantages – for example, companies need have fewer than 250 full time equivalent employees and gross assets of less than £30m.Companies also need to...
Employee ownership in the UK has been thrust into the spotlight again, most recently as a succession planning alternative that can help businesses retain their independence and reward the employees who contributed to the organisation’s success, while ensuring selling shareholders receive fair value for the...
Congratulations to Doyle Clayton, the specialist workplace law firm on its transition to employee ownership this week. Doyle Clayton, top ranked by Chambers Guide to the UK Legal Profession and a top tier The Legal 500 firm, joins a very small group of law firms now...
Background RM2 is an employee owned consultancy specialising in the design, implementation and administration of all types of employee share plan arrangements. Our clients include private companies and those listed on AIM or similar markets. Form more information please visit our website at www.rm2.co.uk. We...
When we begin to speak with clients about employee share plans, one of the questions we are consistently asked is, “what size should the award be”? This is, of course, an extremely important question, but unfortunately not one which is necessarily very simple to answer. There are...
The directors and staff of RM2 are delighted to report that, following a full quality audit, we have retained our ISO 9001:2015 accreditation in quality management and system processes. ISO 9001:2015 is the leading internationally recognised quality standard for business management. Continually meeting the demanding requirements of...
Fast growing companies need to attract top talent to achieve success. Increasingly, director level hires are actively seeking an equity stake in the business, especially if they’re taking a bit of a risk in moving to a smaller business and taking a hit on basic remuneration. Enterprise...
A company with a strong business idea and management wants to upscale its operations and seeks institutional investors to do so. Not uncommon and nor is the fact that there may well need to be a number of rounds of investment and a lot of...
Enterprise Management Incentive (EMI) options remain the most popular share option scheme for SMEs because of their super-flexibility and tax efficiency.But not all companies can use EMI. If your company employs 250 or more full time employees, or has gross assets exceeding £30m, or...
Our operations team at RM2 can put its collective feet up – all 150 returns have been filed in good time for our clients’ share plans. If you’ve not filed your returns yet for the 2018/19 tax year, you have until 6th July 2019. If you...
RM2 does the research for the Employee Ownership Top 50, a list of the largest 50 private employee-owned companies in the UK which has been prepared annually since 2014. RM2 publishes the list in a partnership with the Employee Ownership Association (EOA). Key findings:By tracking the changes in...
