Enterprise Management Incentive ("EMI")

EMI was introduced in 2000 to encourage employees to own shares in their employing company or, if a group of companies, in the parent company. They are commonly used as a means of rewarding, incentivising or retaining employees or for a combination of these objectives. The EMI can be operated on an all employee basis but is usually used on a selective basis.

The options can be awarded with certain conditions which must be achieved before the option vests and the employee is entitled to exercise the option. These objectives can be aligned to the business objectives and can set goals specific to each employee, ensuring the employee focuses on the key business drivers. The company has to satisfy qualifying conditions including regarding the nature of its trade. There are also size criteria that need to be satisfied, the gross assets cannot exceed £30m and the full-time equivalent number of employees cannot exceed 250.