Employee Benefit Trusts (EBTS)

Notwithstanding some negative high profile stories in the press in recent times, a well-structured employee incentive arrangement operated through an EBT, can still deliver real value to a company and its employees.

Jersey has considerable experience of administering EBTs and is supported by modern trust law and robust courts. When added to the tax benefits which may accrue, Jersey is an attractive jurisdiction in which to locate an EBT, whether the employer company is based in a single country or is multi-national.

The purpose and nature of an EBT

The purpose of an EBT is to incentivise and reward employees. By aligning the interests of employees with those of the shareholders, the intention is to encourage loyalty and commitment on the part of the employees and a desire to see the company perform well. Companies benefit from dedicated and motivated employees who in turn may expect greater reward from the successes of their employer.