Employee Share Ownership Plans (ESOPs) can create a powerful arrangement between a business and its employees and contractors. Businesses will normally offer to give or sell shares to their employees and contractors, or in some instances, may set up bonus schemes based on the performance of the company.
Benefits of a well structured and administered Employee Share Ownership Plan include:
- An excellent way to attract and retain key talent within your business
- A way to substitute some cash salary costs in early-stage companies
- Create an 'ownership mentality' and common goal amongst key team members
- Incentivising long term and strategic thinking, helping employees understand business decisions
- Tax and cash flow efficient way to incentivise staff that may not otherwise be able to afford to buy equity
- Can be used as part of a potential exit or sale strategy for current owners
- Flexible structures that can be catered to a range of business needs
Contact us if you would like to learn more about Employee Share Ownership Plans.