BGBG

Employee Share Schemes

Design a share scheme that empowers you, your key people and your business.

Design a share scheme that empowers you, your key people and your business.

An employee share scheme can offer your key people a stake in the business and an incentive to achieve growth. Share schemes are a powerful tool that can help align the interests of shareholders and the team. Awarding share options provides an opportunity to define and articulate business goals, secure employee buy-in and reward employees for success.

An employee share scheme can play a significant role in succession planning and help you in building your team, so employees begin to think and act like business owners. We design share schemes for all types of business tailored to YOUR circumstances.

A share scheme that is not understood serves no purpose. That’s why we project manage every step; from designing it around your business and goals to helping you present it to your team, ensuring their buy-in. Emotional investment is as important as the financial buy-in for you and your team. Our methodology and support helps you create share schemes that inspire you and your team to grow your business together.

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We start with your personal objectives as the owner.

After learning about your business, team and growth plans we prepare a share capital model for you.

We guide you through the valuation, tax and legal complexities and design a bespoke employee share scheme for you and your team.

We then help you co-present this to your team and are on hand to answer any technical questions they may have.

By doing so we empower you and your team to grow your company.

Our dedicated team of solicitors, based in Witney, Oxfordshire, would be happy to answer your questions.

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Your Personal Objectives

A carefully designed and communicated scheme can be a powerful way to engage your team. Our tailored model will show your team the capital growth expected in the future as they help you build and grow the business, as well as dividend income (if appropriate) going forwards. Your personal objectives should come into play and the alternative strategies for your succession should be considered. You might want to include the preferred date when you are to cease to have day to day responsibility for your company. You may also have in mind the sum (net of tax) which you want or need when you hand over control of your business to others.

 

Alternative strategies can include:

You may just want to continue to grow your business without a specific end point or exit in mind, particularly if you are some years off retirement.

The team at Everyman Legal genuinely care. They have the best interests of me personally and my business at heart throughout each stage of the process. Most businesses find it difficult to deal with lawyers as it can be very technical information and advice that they are providing. Everyman Legal are very approachable & make things easy to understand.

Your Business

Starting with your ultimate objective in mind, we will create a share capital model for the period you choose using various assumptions about your business that are reasonable and realistic to show potential future growth. After all, your team will need to buy into the model for it to work for everyone. We will consider things such as turnover and profit, as well as potential costs associated with growing the business.

From this model the build-up of capital value across the team members can be seen, as well as prospective income from future dividend streams. We can help you to set your dividend policy and make sure it ties in with your remuneration strategy.

A Bespoke Share Scheme

Valuation, tax and legal complexities need to be fully thought through so that everything can come together in the way you want it to. The share capital model will show your turnover and profit growth plans and the agreed multiple for valuation purposes.

The alternative types of share scheme will be considered, perhaps an Enterprise Management Incentive Share Option, a HMRC tax advantaged scheme or maybe Restricted Shares. This will be dependent on your business and the members of the team to whom options will be granted.

We also consider the Articles of Association of your company, including the balance of power and voting control and any buy-back provisions that may be suitable.

A share scheme that is not understood is not motivational.

You and your team will be guided through the process with clear and simple explanations of the legal documentation and how everything works.

Once we have agreed everything with you, we help you to communicate the plan to your team, ensuring their buy-in. We are on hand to answer any technical questions they have and use the share capital model to help them understand the long term plan for the business and how they will be part of it.

Our dedicated team of solicitors based in Witney, Oxfordshire would be happy to answer your questions.

Contact Us