Under an EMI scheme, employees are offered the opportunity to purchase shares at a set price at a future time when certain conditions, set out in the option agreement, are met. This is known as the grant of share options. The exit plan on these options will be the floatation of Swanstaff on the stock market in 2023 when employees can choose to purchase their shares at the price specified, when the shares are sold employees will benefit from any growth in value.
Stephen Rogers, CEO discussed his reasons behind the decision to gift shares “I feel it is a really important decision, recognising the people that have been part of the Swanstaff journey. The concept behind this scheme is that our employees get rewarded for their service to Swanstaff and in return I will see an increase in loyalty and productivity. Employees will be “bought in” and will want to see the value of the company increase over the years as much as possible, so we can all work together towards this goal”
Grace Copley, who has been employed by Swanstaff for 4 years said “I think this is a fantastic incentive for employees like myself, I have seen the company grow so much already and to know that I will benefit directly from future growth is great, it will mean I will invest more into my role to ensure the business keeps developing”.
Dan Crocombe, Branch Manager said “We already have some great incentives and commission structures in place here at Swanstaff but this is a long term benefit that we can all directly influence via our performance – it means we’ll strive even harder to exceed our targets. I think this will also attract a high calibre of staff to the business which can only be a good thing for all of us”.
46 employees have opted in and been gifted options this year and will be entitled to further increments if they remain employed by Swanstaff over the next 5 years.
EMI share option schemes provide significant tax advantages to employee option holders and substantially boosts the incentive value. Put simply, an ‘EMI’ scheme is by far the most tax beneficial structure for staff. The EMI was introduced in 2000 to assist growing companies in attracting and retaining key employees and to reward those employees for taking the risk to work for such companies.