We undertake a wide range of employee incentives work in respect of privately held companies in the UK. From UK-based professional service providers to international investment banking and telecoms groups and private equity investors they vary greatly in terms of size and requirements. The unifying feature is that they each require arrangements which are driven by their own specific business plan and which fit into a thought through remuneration policy.
The key issue for private companies is the creation of some liquidity in the shares. Absent a realisable intention to sell the company, or its flotation (when those participating in employee share plans will be able to realise the value of the shares), it may well be appropriate to consider the creation of an internal share market. Ultimately, for some companies, shares may not be a suitable choice of incentive vehicle. Where this is the case, we can work with you to identify an appropriate cash incentive design and broader reward structure.
Services for private company clients
- Working with you to identify the most effective plan design to fit with your business and its planned development, whether that involves an aggressive route to an eventual trade sale, or flotation, or maintaining a successful independent organisation (including succession planning)
- Identifying beneficial tax and social security efficiencies for participants and their employing company, including quantifying corporation tax deductions, available from share incentive arrangements
- Key help in understanding how to operate a share plan most effectively, including the management of shareholder and economic dilution, how many shares to grant, to whom and how often
- Drafting and implementation, including assistance with key communication documentation and help with identifying appropriate providers such as trustees and administrators
- Obtaining agreed share valuations from HM Revenue & Customs
- Ongoing operational and administrative advice and assistance to ensure the arrangements work effectively and compliantly
Please see the list on the left of the page for more information on employee share plans, or contact us if you would like to discuss your requirements (we are very happy to talk to potential clients without charging them for the privilege).