Management Equity Incentive Plans - Key Considerations

Employers looking for alternative ways to ensure key employees are incentivised to perform and grow value in the business should consider equity plans.

Equity plans can assist in attracting, motivating and retaining staff which are some of the critical challenges many businesses face.

Often, these arrangements require little day-to-day administration and can contribute to company performance due to alignment of interests between employees and employer.

Equity Incentives

Equity incentives usually fall within one of four broad categories:

• Revenue-approved share options and plans;
• Unapproved share options;
• "Phantom" equity schemes; or
• Direct shareholdings.

Determining the Type of Plan