Partner and Head of Wills & Estate Planning at Andrew & Co Solicitors Helen Newson writes...
Employee Share Option Schemes
Recruiting, incentivising, rewarding and retaining key employees can be a real challenge for employers located in areas such as Lincolnshire where salaries do not always compare favourably with those in the larger cities.
The right to purchase the shares can, and often is, linked to performance criteria such as turnover or sales targets. Essentially, the employee is being rewarded for taking the risk to work for the business. The idea is that if the business does well then the employee shares in the success. Such schemes are also a suitable way of rewarding existing long term, loyal employees who may be interested in ultimately buying the business. There is also a misconception that setting up these schemes is expensive and complicated but in most cases the process is straightforward and does not cost as much as you might expect, in fact, we are usually happy to provide you with a fixed fee for this type of work so that you know in advance exactly what it will cost.
Our role as your advisor would be to make sure that the process runs smoothly, that you fully understand and are in control of your scheme and that the documents are correctly drafted so that the business is properly protected.
If you would like further information or to make an appointment with a member of our Corporate & Commercial team, please contact us on 01522 512123 (Lincoln) or 01636 673743 (Newark).