UK start ups / spin-offs
A vital ingredient of the success of many fast-growing start-up and spin-off businesses is identifying the most appropriate reward and incentive arrangements for their key people and wider employee base alike. The balance of this page is devoted to limited companies but should you wish to discuss how we can help partnerships and LLPs then please do contact us.
There are a wide range of tax-effective share incentives available for limited companies. For spin-off companies there are specific tax breaks to be taken advantage of.
We help our clients:
- Ensure that shareholder value is delivered in return for the reward offered
- Decide whether share based incentives are appropriate for their companies
- Deliver employee incentives in appropriate amounts and at appropriate times to help get the most from people
- Avoid unnecessary complexity and administrative burdens with the correct design, drafting and implementation choices
Key to the use of share based incentives is the creation or expectation of some liquidity in the shares. For many start-up and most spin-off companies an exit route for shareholders through an eventual sale is expected. If not, it may be appropriate to consider the creation of an internal market for the shares. For some companies, shares may not be a suitable choice of incentive vehicle either because of the absence of any planned or created liquidity, or because of their ownership structure or a variety of other reasons. Where this is the case we can work with you to identify an appropriate cash incentive design and broader reward and remuneration structure.