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As the IPO market in Europe slows down, employees look for other ways of exits - article from Zosia Wanat, Sifted, 1 May 2024

What are the tax advantages and implications of EMI share options?

We need someone who has first-rate experience on the legal side of executing EMI, growth share, CSOP and unapproved share and option schemes, who can help our fast-growing business to expand further.

Understand the basics of share options

Questions such as the type of configuration you want for your option scheme, for example who should get share options, how many each, and when they can actually buy the shares.

This blog covers how to structure your EMI options scheme in terms of when the employees can actually buy their shares.

Check the eligibility rules for the company and the employees

Some useful points on the legal stuff for EMI

Over the last few years our firm has been setting up an increasing number of EMI schemes using what I call the ‘hybrid’ design which is kind of a cross between a pure exit-only or time-based plan. The hybrid is typically known as the ‘four year vest, one year cliff’ option and is particularly popular with tech companies.

When it comes to employee share schemes you will often hear or read the term ‘option pool’ but what is it and what are the implications for shareholders and staff?

Share options are very useful for companies who wish to incentivise and retain key employees and a CSOP scheme can provide significant tax advantages. An individual can now hold CSOP options over shares with a value of up to £60,000, up from £30,000 previously. A CSOP can often be used by companies that may not qualify for an EMI option scheme.

Growth Shares can be a good solution for companies who wish to incentivise and retain key employees using equity in a situation where an EMI share option scheme is prohibited due to legislative restrictions. Growth shares can still provide significant tax advantages to those employees.

This is an update from my blog from two years ago – I have reviewed the various providers again so that I could refresh the information given.

This blog covers how to structure your EMI options scheme in terms of when the employees can actually buy their shares.

Most people will have heard of share options and have an idea that they can be a great inspiration. They are indeed, and better still put no demand on your cash flow.

EMI share options are the best way to incentivise employees by giving them a real stake in a company.

We have just published a set of new videos covering all aspects of EMI option schemes

Learn the six key benefits of EMI share options

'Growth Shares' can be used in situations where a company is not eligible for an EMI share option scheme

An EMI option scheme is by far the most beneficial tax-advantaged share option arrangement for an employee. These are what I believe to be their five key benefits

It's amazing what a share option scheme can do to help motivate key employees

This is a short overview of the key general duties of board directors.

Looking to incentivise your staff? There is a large choice of share and option schemes available.