Employee Incentive Schemes

Our team is experienced in working with companies looking to incentivise their employees via the use of share option and ownership schemes, including employee share ownership trusts (ESOT or EOT) and enterprise management incentive schemes (EMI).

We work closely with our clients’ chosen accountants to set up and implement the necessary corporate structure, trusts (including corporate trustees if required) and related documentation to ensure their aspirations for the future have sound foundations.

For EOT’s our work involves drafting the trust deed, the documentation to transfer ownership of the shares to the new trust, as well as all related ancillary corporate and lending documentation.

For EMI schemes we draft the scheme rules for adoption by the company, as well as the individual EMI agreements between the company and relevant employees.

In all cases, we consider, advise on and amend as required the company’s memorandum and articles of association and prepare all necessary board and shareholder documentation.

We can also advise individuals on the documentation they receive on the grant of share options.

Recent examples include:

• Advising a holding company on the disposal of 100% of its share capital to an EOT with a corporate trustee, including establishing the trust, transferring the shares and advising on and mitigating the risk relating to the payment of deferred consideration. The total transaction value was approx. £3m.
• Advising a company on the partial transfer of shares to an EOT and at the same time the set-up of an EMI scheme, including drafting the rules of the scheme and the individual EMI agreements for employees, with a total transaction value of £12m.
• Advising a company setting up an EMI scheme on necessary amendments to its articles of association.

If you would like further information or advice about Employee Incentive Schemes, please contact a member of our Commercial Team on 01752 388883. Alternatively please e-mail either Matt.Cook@brightllp.co.uk or Katrina.Smiles@brightllp.co.uk.