Employers are increasingly using equity-linked and other incentive arrangements to attract and retain key employees.
An employee benefit trust (EBT) is a discretionary trust established for the benefit of employees of a company (or a group of companies). An EBT can also be referred to as an employee share ownership trust (ESOT).
Companies are recognising the importance of employee benefits in order to attract and retain personnel. These structures are constructed on a bespoke basis to suit an employer's criteria in providing a variety of benefits to its employees; typically the most common are share-based incentive arrangements.
Nedgroup Trust is recognised as a leading provider of trustee and administration services. Our experienced administration and management team work in conjunction with professional legal and tax advisers in establishing and administering bespoke employee incentive arrangements tailored to meet client requirements.
Employers are increasingly using equity-linked and other incentive arrangements to attract key employees. Many of these arrangements are complex and can involve several different jurisdictions. It is often sensible to organise such plans through tax-neutral financial centres such as Jersey and Guernsey.
An EBT can be established for a variety of purposes and some of these include:
There are many different types of incentive arrangements which vary depending upon the nature of the company and its requirements for incentivising its employees. Incentive arrangements are often serviced through an EBT, and typically hold a combination of equity, funds and cash investments. Benefits include investment flexibility, tax planning and deferral.
Selected incentive arrangements include:
Our clients range from FTSE 100 to AIM-listed organisations, as well as smaller private companies, often private equity backed. We work closely with leading legal, accounting and advisory firms, where appropriate, to offer the following services:
The above is based on our understanding of the current legislation, and should not be considered as legal and professional advice, which should be sought.
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