Key employees are vital to the continuing growth of the business. They will be retained and innovate if rewarded appropriately. This paper is about the important issue of employee remuneration and its tax consequences for both employer and employee.
The issues which will be considered include:
- providing equity in the business while retaining family control
- the interaction between Div 83A and executive share and option plans
- alternative remuneration strategies, e.g. phantom share schemes
- sign-on incentives and other bonus arrangements
- funding of employee incentives
- thinking ahead – impact on the structure and exit/succession planning.