Setting up share schemes can be a rewarding experience for both the individual employees and the company. It can also greatly improve the financial offering that a company can make. There are however a substantial number of steps which a company should take in setting up a plan. It needs to ensure that
- the plan is affordable
- that it delivers on the objectives which the company set out
- it motivates employees in a manner which the company would wish
- it is legally compliant
- it is communicated effectively
- it can be administered without placing too large a burden on existing staff
- it is tax compliant and where possible tax efficient
This requires a contribution from potentially lawyers and accountants and communications experts depending on the size of the company and the type of plan it is taking up. Share schemes require a number of different activities to ensure that the launch is successful. These include:
- drawing up the scheme rules
- agreeing the administration required
- modelling the financial affordability of the plan and its costs
- modelling the potential reward to employees
- agreeing accounting treatment of any awards
- communicating the plan to employees
- collating acceptances and feedback from employees
- arranging for the purchasing of shares which may require a trust arrangement
As an independent company, Primondell can help you through the entire process assisting with the appointments of lawyers or accountants as necessary and also the appointment of Trustees and administrators when required.Jeremy Mindell is an experienced share scheme practitioner who has assisted in many schemes which have created worthwhile rewards to employees and enhanced company performance to create greater and greater shareholder value.
The aim of the company is to assist you in the implementation of any plans and help with the appointment of any third-party providers that are required. We look to make the process as quick and efficient as possible whilst ensuring that the important factors which are crucial to the success of any plan are fully explored.Our approach is to first of all look at the objectives of the company in terms of its reward offering and incentive structure. We then recommend the type of share scheme to adopt and some of the rules that they may wish to consider. Then look at the appointment of the appropriate third-party providers and assist in any competitive tender process by setting out the requirements of the client. Finally we will assist in drawing up the communication to employees and can either deliver or train up persons within the company to deliver the all-important communication.
