HQ Boardroom Discussion – Alternative Employee Equity Structures with EY
Employee Equity Schemes have been employed by early-stage companies, who often lack the budget to offer competitive salary packages to attract skilled and driven team members, as an alternate form of remuneration and incentive to motivate employees.
Following on from the Hatch Quarter Boardroom Discussion with EY on Startup Employee Equity Schemes in March 2021 where EY discussed how options can be structured to access the start-up tax concessions and considerations when designing an equity plan, this discussion cover:
– A brief recap of the start-up tax rules
– Other common employee equity structures used by early stage / high growth companies, and commercial reasons for using these structures. The structures to be covered will be loan share plans, performance rights, and premium-priced options.
– Related tax implications on the alternate equity structures.
– Recap of the Federal Budget announcements relating to employee share schemes and its potential impact for private companies.