Incentive schemes come in a variety of forms and can be driven by single performance measures (such as achieving sales targets) or more complex “whole firm” measures typically applicable to senior management.
There are also a plethora of employee reward and benefit schemes available to employers to recognise, motivate and retain personnel.
For senior management and smaller-company owners willing to release ownership in part to management, Enterprise Management Incentive (EMI) option schemes can be an effective tool and tax-efficient for the recipient(s). Such schemes can be useful for new or growing businesses, or as a means of passing on shares in anticipation of retirement. However, schemes must be set up with great care and thought.
The ultimate choice and structure of incentive scheme very much depends on the objectives of the business and its owners, combined with the motivations of management and employees (individually and as teams).
Meridian can help as follows:
- Helping you develop incentive schemes that match your objectives and the needs of individuals in your organisation – these need not be complicated but if they are, much care is needed
- For companies and EMI schemes, we can help confirm your eligibility, help devise terms and conditions of the scheme, set up the scheme (and liaise with HMRC), assess business valuation, and consider if employment law is an issue
- By ensuring you comply with company law, taxation regulations, and the constitution of your business