10 Ways Enterprise Management Incentives (EMI) can help you retain great staff [Infograhic]

THE BENEFITS OF ENTERPRISE MANAGEMENT INCENTIVES (EMI) Enterprise Management Incentives (EMI) are a share option scheme that allow you to provide tax advantageous incentives to key employees. Select staff are granted an option to purchase shares and become stakeholders in the business in the future. A price (known as the exercise price) is set for the shares and fixed as part of the arrangement. Your employees exercise their options either at a pre-determined date, or, on the occurrence of a specific event being often a sale or flotation. It is expected that over the course of that time, the value of the shares increases above the level originally set as the exercise price. EMPLOYERS EMPLOYEES ALLOWS THE OPTION FOR THE EMPLOYEE TO AN INITIATIVE THAT HELPS TO RETAIN STAFF & TIES THEM TO THE FUTURE BE A FUTURE SHAREHOLDER AND PERFORMANCE OF THE REWARDED FOR THEIR ORGANISATION HARD WORK AND CONTRIBUTION FIX IN AT AN EXERCISE PRICE THAT WILL POTENTIALLY ENABLES THE COMPANY TO SET TARGETS FOR INDIVIDUAL EMPLOYEES BE FAR BELOW THE IN LINE WITH STRATEGIC OBJECTIVES EXPECTED SALE PRICE IN THE FUTURE EMI IS AN ALTERNATIVE FORM OF REMUNERATION, IMPROVES JOB MEANING IT CAN BE SATISFACTION & USED INSTEAD OF PRODUCTIVITY A SALARY RISE AND/OR BONUS, WITH AN EVENTUAL STAKE ESPECIALLY DURING IN THE COMPANY EARLY STAGE GROWTH CO POTENTIALLY BENEFIT THE COMPANY CAN FROM IMPROVEMENT IN SET THE FUTURE EXERCISE FINANCIAL PERFORMANCE PRICE - THE VALUE AT AND FUTURE SALES THAT 10 WHICH THE EMPLOYEE THEY HAVE HELPED WILL BUY INTO THE 10 CREATE ORGANISATION AVOIDS CREATING UNNECESSARY NO INCOME TAX AND NATIONAL MINORITY SHAREHOLDERS AS INSURANCE PAYABLE ON EXERCISE EMPLOYEES REWARDS DON'T DILUTE (ABOVE FIXED VALUE) AND GAIN ON THE EXISTING SHARE OWNERSHIP POTENTIAL SALE TAXED AT 10% UNTIL A SPECIFIC EVENT OR SET (ENTREPRENEURS' RELIEF) FUTURE DATE. wellers www.wellersaccountants.co.uk in y f 8+ f &* business oxygen 18