RM2 has launched a new edition of its long-standing and authoritative guide to Employee Share Schemes for Private Companies. First published in 2004, this is the sixth and most comprehensive edition yet. Written by RM2 director Sarah Anderson, the 270-page guide comprises 13 chapters covering all the main types of equity incentive – from EMI schemes to the all-employee Share Incentive Plan and the new Employee Ownership Trust.
Of particular interest are the chapters focusing on solutions to the often daunting practical challenges of operating share schemes in unlisted companies, such as share valuation techniques, internal share markets and dealing with the shares of ‘good’ and ‘bad’ leavers.
Nigel Mason, RM2 managing director, said:
‘Whether you are a manufacturing company wanting to increase productivity, or a service company anxious about the tightening labour market, or a professional services firm concerned about losing talented consultants to the big firms, employee share schemes are a proven solution. But, at less than 1%, the penetration of share schemes in private companies is still very low compared to listed companies, probably because directors are deterred by the perceived challenges, and there are signs that the rate of adoption has tailed off since the 2014 peak.
‘We want this book to demystify equity incentives and embolden companies and their advisers to look further. Having established over 1,140 schemes in our 20-year history, we’re confident we have the rounded experience and insights to get share ownership up and running quickly and efficiently in most situations presented to us.’