Business sector: Technology
Turnover: £200k
Shareholder/business goals and challenges
- Needed to recruit key talent to drive business forwards but with limited cash resources
- Target employees employed by larger businesses within the same sector who offer greater salary and bonuses
- Start-up needed to offer share incentives to secure target employees with the prospect of very meaningful upside if the business succeeds
What we did and achieved
- Set up a tax efficient Enterprise Management Incentive option plan which was used as a key part of the company’s recruitment negotiations
- All new recruits joined the start-up company from larger more established competitors
- New employees building up meaningful stakes in the business on meeting certain milestones but without impacting on control of founder shareholders
- Buy-in cost negligible for new recruits, enabling them to acquire their shares over time and with ultimate returns taxed at only 10%
