Jersey: Employer´s Guide To Executive Share Plans - 24 April 2009

24 April 2009
Article by Philip Norman , Clive Chaplin , Tania Bearryman and Philip Le Cornu

Introduction

The world of executive remuneration and the combination of cash
and share based incentives is ever under the spotlight. Rewarding,
motivating and retaining senior employees and attracting new high
profile executives to your company requires a well structured, tax
efficient and effectively administered remuneration package.

Effective share based incentive plans should be designed to
align the activities of executives and senior employees with the
requirements of the company's shareholders and meet their
expectations with regard to quantum and corporate performance.Share
plans should also be designed to benefit from any tax advantages
available to the employing company.

Share plans typically include vesting periods of 3 to 5 years
subject to certain performance targets being met. This form of
incentive planning should meet the criteria imposed by the
appropriate representative bodies such as the ABI and NAPF and more
recently the FSA's new code of practice for remunerating
employees of regulated entities.

Employers need to be aware of what products are in the market
place and have access to experienced advisors, administrators and
trustees to actively manage the risks and rewards associated with
the set up and ongoing operation of share plans.

This guide highlights the variety of share plans in the market
and illustrates the way in which these can be tailored to meet
specific requirements as needed.

For the entire white paper...  www.ogier.com/publication library/Employers_Guide_to_Executive_Share_Plans.pdf