What is employee incentivisation?
Employee incentivisation is the use of a variety of remuneration mechanisms to attract, incentivise and reward employees. Incentivisation packages can take the form of bonuses, commission arrangements or option or share schemes.
The Enterprise Management Incentive (EMI) structure is available to small businesses and involves granting share options to employees with advantageous tax terms attached.
It is crucial to get professional legal and tax advice if you are considering implementing an employee incentivisation mechanism as the rules can be complex.
Why is employee incentivisation important in a transaction context?
In the run-up to a proposed transaction, a company will need all its employees to be aligned to grow the business to its maximum potential. An employee incentivisation mechanism can support this objective.