Share Options
How do share options work?
An employee is given the option to acquire shares at a future date. The option can be conditional on performance targets being met. These are substantial tax benefits if, as is often the case, the option rules can be tailored to match HMRC requirements.
Other Incentives
What other schemes are available?
There is a variety of other incentive schemes available aimed at providing long term benefits. These are often less tax efficient than certain share options but may not involve the employer sacrificing equity.
What happens if an Employee leaves?
Normally he or she would lose any rights which had not already become exercisable subject in some cases to exceptions for employees who are retiring or redundant or are otherwise regarded as “good leavers”.
