Problem or opportunity?
KEY POINTS
- Share schemes can be a powerful tool for employers to motivate and retain staff.
- Care is needed with employment related securities especially when conditions are attached to the shares.
- Four tax-advantaged share schemes exist – two are for all employees the others can be targeted.
Rewarding staff with share schemes can provide cost savings to companies
It is fair to say that practitioners sometimes perceive employee share schemes as a problem. The legislation on employment related securities is considered opaque full of traps and hidden charges; it can lead to complex discussions on a sale or an exit; and the accounting rules are unfamiliar.
This is a shame because employee share schemes can be powerful tools for employers to attract and retain staff.
It is true that the opacity of the employment-related securities legislation...
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