Over the last 40 years, Share Plans have become a key part of the remuneration package, for both senior executives and employees generally.
Well designed, communicated and administered Director Share Plans and Employee Share Plans can play a valuable role in motivating and retaining employees, educating them about financial issues and making them feel stronger ties to the business and its long term growth.
MM&K offers companies comprehensive Director and Employee Share Plan solutions, including Design, Implementation, Valuation and Ongoing Support. We work with a wide range of companies, large and small, quoted and unquoted, many of which have employees globally.
Share Plan Design
Your business is unique, so the right Share Plan (or combination of Share Plans) cannot be known in advance. We work with you to design an incentive structure which will best help support your business growth strategy.
Our team has extensive knowledge and expertise in Share Plan design, having put in place over 1,000 plans.
As commercially minded people, we work to understand your business and can make specific recommendations on all aspects of share plans – including structure, quantum and performance conditions.
Share Plan Implementation and Communication
Whilst we keep our share plan designs as simple as possible, the documents required can be complex. We prepare the key share plan documents, including Trust Deeds, Rules, Grant Documents, Shareholders’ Circulars and Board/Shareholder Resolutions to ensure they do what is intended.
Communicating Share Plans, whether to owners/investors or to employees is crucial for a plan to be accepted and successful. We prepare plain speaking written communications as well as giving formal and informal presentations.
The value of a share goes right to the heart of their use in long term incentive plans.
Share Plans involving private companies or unlisted shares can be difficult to value for tax purposes as the criteria are often different from commercial valuations done for other purposes.
We are experienced in undertaking Share Valuations for all sizes of business and have a good working relationship with HMRC and obtain their approval where possible.
Share Plan Ongoing Support
Even the simplest of Share Plans may require ongoing support. We provide assistance in a number of areas:
- Administering the Share Plan
- Monitoring achievement of performance conditions, including calculation of TSR against comparators
- Calculating IFRS 2 share-based payment accounting expense
- Providing updates on changes in regulations and market practice
- Share Plan Health Checks – these review all aspects of Share Plans to ensure that plans remain up to date and aligned with the company’s objectives.
We deliver our Share Plan work using a mixture of commercial experience, a skilful multiple disciplinary team and an ability to obtain and analyse market data.
Popular Share Plans
Share Plans develop over time. In addition to changes in legislation, there are changes in market sentiment. Read more to understand what the most popular types of Share Plan are currently.
Creating a Market
Many Share Plans are set up with the view to a business being sold or listed. However, for many family and private companies, this is not a realistic proposition. Trusts which benefit employees can be a practical solution to this.
Share Plan Fact Sheets
It can be difficult to find simple, straightforward information about Share Plans. Our Fact Sheets set out how various Share Plans work and also breaks down some of the most important issues affecting Share Plans in simple language.
Share Plan Administration
Putting in place a Share Plan is just the start of the process. Depending on the type of Share Plan you choose, the level of administrative support required can range from ad-hoc question answering to fully outsourced Share Administration.
Please get in touch with any enquiries about our services.
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