Driving Growth with an EMI Share Scheme

The Challenge

Our client is a shareholder preparing to step back from the day-to-day running of their business. They wanted to reward and retain 4–5 key employees who were taking on increased responsibility as the main shareholder steps back from the business. With plans to build the business towards a trade sale within the next 10 years, the goal was to align the team’s interests with long-term growth and ensure continuity. The client sought a tax-efficient and motivational share scheme that would only deliver value to the employees on a successful exit.

The Solution

We worked with the client to assess the most appropriate structure for incentivising the leadership team. While a growth share arrangement was considered, we ultimately recommended an exit-only EMI scheme due to its significant tax advantages for both the company and the employees.

The EMI scheme was designed so that value would only accrue to the employees upon a successful sale of the business, aligning their personal rewards directly with the company’s future success.

The Value

The scheme has helped secure the commitment of key staff during a period of leadership transition and provided them with a clear stake in the company’s growth. The EMI structure offers a compelling, tax-efficient incentive, and positions the business well as it moves toward a potential exit event over the next decade.