Using shares instead of a pay rise

Most SMEs won’t be giving out pay rises this year, following on from the Covid-19 crisis. So how can you motivate your team when cashflow is tight?

Equity is a fantastic way of incentivising key people, and in the long run it can more than compensate for any short term salary stagnation.

Preserve cashflow... and company morale

Times are tough for many firms. Some SMEs have introduced share schemes to offset a reduction in salaries. Others are using shares and options in place of a pay rise.

Align the whole team to your long term goals

Equity aligns interests like nothing else. Research has consistently shown that sharing ownership increases productivity, loyalty and overall business value.

Compensate people in a tax efficient way

Enterprise Management Incentive (EMI) schemes are the most popular way to distribute equity among UK SMEs. The tax benefits on offer are as good as it gets.

Improve your company culture

Giving your team a slice of the action makes them feel differently about your business. This is a particularly good idea for fully or partially remote teams.

Get on the fast track

Set up a 1-2-1 discovery call with one of our equity specialists. We will explore:

Your company structure
The best scheme types for your needs
How to protect existing shareholders
Setting conditions and milestones
The costs and tax implications

We’ll also answer any questions you have about sharing ownership.

Figure out when would be a good time to talk and schedule a video meeting (or contact us to request a phone call).