We work with our clients to design incentive plans that meet their objectives. This includes advising on:
- financial metrics;
- share option and other share based arrangements, for example:
- HMRC tax beneficial plans including EMI, Company Share Option Plans, Save As You Earn and Share Incentive Plans;
- joint share ownership plans;
- growth shares;
- employee shareholder status;
- long term incentive plans;
- deferred bonus arrangements; and
- cash based and phantom share plans;
- employee ownership arrangements for employee owned businesses
- structuring plans in a tax efficient way and advising on the tax impact for both employer and employee;
- institutional shareholder and corporate governance requirements;
- overseas considerations and tailoring plans accordingly.
Following the design process we handle all aspects of plan implementation. This includes:
- drafting plan rules;
- compliance with regulatory requirements, including in overseas jurisdictions (our lawyers have implemented plans in over 80 countries), such as:
- securities laws;
- plan filings;
- exchange control regulations;
- data protection;
- employment rights;
- board and shareholder approvals;
- drafting employee communications.
Our relationship with our clients doesn't end at implementation. We continue to support clients throughout the lifetime of their incentive plans, including:
- plan vestings and option exercises;
- plan amendments;
- advising on share sourcing strategies;
- share dealing and market abuse regulations;
- disclosure of directors’ remuneration for listed companies.
Corporate activity will have an impact on incentive plans. We advise on takeovers, mergers and acquisitions, demergers, capital raising activities and initial public offerings and structure appropriate proposals to be made to plan participants.
We establish employee benefit trusts to underpin the operation of many types of share incentive plans and have relationships with independent trustees who administer these trusts.