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.

Vestd: the easiest way to share ownership

You can issue shares and options immediately via the Vestd platform. There’s no need for any paperwork: it is all done digitally, and is fully integrated with Companies House.

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).

The platform you can trust

Vestd is the only FCA regulated and authorised platform in the UK. We’ve helped 1,000+ businesses with their share schemes and equity-based agreements.