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Private Shares Liberation Plan

Corporate remuneration and incentives planning are key components of any successful modern business. It has become recognised that indirect incentive platforms maximise incentive effects.

However, incentive planning objectives can be met only if the funding of the incentive arrangement is correctly structured. Cash funding reduces profits, which may prejudice the structural value of the company. New share issues dilute existing equity holdings without appropriate accounting or fiscal recognition.

 

To combat these value problems, we have developed a unique Shares Remuneration Trust, which solves the structural planning dilemmas of indirect incentive arrangements without incurring fiscal penalties, providing a value solution.

The Power of the Shares Remuneration Trust

The Shares Remuneration Trust is a Commercial Trust. The criteria for membership of the class of beneficiaries are very flexible and shaped to match the content of the incentives arrangement.

The contributing shareholders will be excluded from all benefits. The Trust has independent Trustees, selected by the Company. Existing shareholders contribute shares to the trust, without fiscal penalty and those shares thereby change from carrying merely a passive ownership value to carrying a dynamic incentives value.

The financial and fiscal treatment of Trust transactions follows this essential change from direct to indirect incentive provision. And importantly, the Shares Remuneration Trust can be tailored to your precise individual requirements by expert solicitors.

 
     


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