Practice areas

Our employee share schemes and incentives practice advises on the full range of employee incentive schemes. We assist on the design, implementation, roll-out and operation of schemes. Our clients include large international listed companies and established private companies, including many private equity-owned businesses, start up ventures, senior executives and trustees.

Our multidisciplinary team covers scheme design, taxation, company law and regulation, including in particular the FSA's Remuneration Code.

Much of our work is international and we are experienced in working on incentive arrangements and option schemes outside the UK. We have close relationships with the leading independent law firms in overseas jurisdictions with whom we work on the non-UK aspects of such matters.

We frequently advise on the share schemes aspects of corporate transactions, advising on the effect of transactions on the existing schemes and the way in which the transaction can best be structured to deal with them efficiently, drafting communications and assisting on any new incentive schemes that may be required post-transaction.

Following the introduction of a 50 per cent income tax rate for the highest earners and the new "disguised remuneration" legislation, the taxation aspects are under even more focus than usual and we are increasingly being asked to advise clients on how to mitigate the effect of these changes.

We have a particular expertise in the structuring of equity based incentive plans. The key aims here are to avoid upfront tax and to secure capital gains tax treatment on the ultimate profits. There are many different structures available and in all cases we work with our client to ensure that the most appropriate rate is chosen. In some cases, a simple ordinary share equity plan will be suitable whereas in other cases more bespoke arrangements such as growth in value shares or deferred payment and/or joint ownership arrangements are required.