Aligning employees interests with a share scheme

“The use of employee share schemes is soaring, especially among smaller private companies”, says Alex Warren.

Employee share schemes are already commonplace in UK quoted companies. These often take the form of share options or awards of shares which are released to employees over time on the achievement of performance targets. Now, however, smaller companies are using specially designed schemes, such as the government sponsored Enterprise Management Incentive, to help them get through tough times. These schemes not only provide effective incentives for staff members but also offer the potential to save large amounts of tax and conserve cash.