Elve Enterprise Management Incentives (EMIs)
Reasons to choose Wilson Browne
Key Elve employees at Santa’s Elves Limited (the “Company“) have been approached by Papa Noel Limited (the “Competing Company“) to cease working for the Company and join the Competing Company.
This offer has come with better working conditions and a higher salary as opposed to what they are receiving with the Company.
The Elves are keen to explore this new offer. They told Wilson Browne Solicitors that they were “tired of being unappreciated and unincentivised by the Company. We have given Santa our loyalty and commitment for the last thousands of years! And now we want to be rewarded for our hard work and effort in keeping Santa’s reputation and the Christmas spirit in good form, allowing Santa to cash in on the season’s goodwill.”
The Company, on the realisation that they may lose their key employees and that millions of children around the world may have to go without gifts for the festive season, thus the Company losing billions in Christmas spirit, was quick at its feet to speak to Wilson Browne Solicitors, to set up an EMI scheme in order to retain and reward key Elve employees.
The EMI scheme meant that the key Elve employees would be granted an option to receive shares in Santa’s Elves Limited in 2025, but at today’s value. So, the work they were doing now would not only benefit Santa as the current owner but themselves as the harder they worked and the greater the increase in value of the Company, the more they stand to benefit in the future.
Not only this, but the options would be tax efficient for the key Elve employees; they would not incur tax on award and only on sale, benefits from Asset Disposal Relief, options would be issued later at a pre-agreed price.
Santa was lucky to have taken the right action at the right time; you might not be so lucky. So don’t be elfish (excuse the pun) and give us a call to learn how Wilson Browne Solicitors can help retain and incentivise key employees for your business.
More on EMI schemes
Posted:
Nadiya Sheikh
Solicitor
Nadiya is a Solicitor in the Corporate and Commercial team and advises on all aspects of corporate and commercial legal services. Nadiya enjoys working with clients of all shapes and sizes, regardless of sector.