Growth share schemes for employees

The Covid-19 pandemic affected all aspects of life with how we work being altered overnight. Remote working became the standard and people were left with more time to re-evaluate their careers and personal goals. But for companies this has meant that employing and retaining talented staff has never been more important.

As a result we have seen an increase in companies seeking to use share schemes in their remuneration and employee retention strategies. When properly implemented a share scheme can be an excellent tool to motivate employees while also remaining cost and tax-effective for both parties.

Often the ‘go to’ scheme for small and medium sized entities (SMEs) will be an enterprise management incentive (EMI) scheme although as discussed in Peter Rayney’s article (‘Say it with shares’ Taxation 1 December 2022) such a scheme is sometimes commercially inappropriate or simply unavailable ...