The pros and cons of the Key Employee Engagement Programme
(KEEP) and the Restricted Share Scheme.
Attracting and retaining staff is one of the key issues for
employers. How to reward staff in a manner that encourages both
performance and loyalty is a constant challenge. Share-based
remuneration has long been a feature of incentive plans for
employees. It can take many forms, such as tying bonuses to share
price performance or in some cases awarding shares in the company
to employees.
The tax treatment, while not the only consideration, can make or
break such incentive plans. Fortunately, tax legislation contains
some reliefs for various employee share schemes and we will now
consider two such schemes that may be of particular relevance to
SMEs.
