Team Building Through Bonuses & Options

Growth businesses often need to move beyond only relying on the flair and ability of the entrepreneur, transferring the management of the business down to competent managers. How well this transition is managed will have a direct impact on the businesses ability to grow through to the next stage.

vfdnet provides the following services:

• Analysis of the management team to identify team expertise gaps
• Job specifications and assistance drafting adverts / agency search criteria
• Motivational management incentive schemes linking senior managers bonuses to achievement of profit targets
• Share option plans - either Enterprise Management Incentive plans (EMI), revenue approved option schemes (both tax efficient) and revenue unapproved share option plans

Team building benefits are very significant:

1. A motivated team will be more likely to achieve goals
2. Better senior manager retention
3. Business owner can spend less time in the business

vfdnet part time Finance Directors have extensive experience of working with entrepreneurs to develop their team, having managed teams through rapid growth phases through implementing all types of incentive and share option schemes. Ask us about our services.

Case Study 1

The client had a developing management team which the owner wanted to motivate towards hitting his goals. A Management Incentive Scheme was implemented, linking senior manager's bonuses to the achievement of pre-defined budgeted profit. Full scheme rules were applied, and progress was monitored every month. The client hit budgeted profit, paid out bonuses and successfully grew its turnover over 4 years from £12m to £36m.

Case Study 2

On detailed review, this AIM listed client had significant deficiencies in its incentive plans. Firstly, we replaced the existing inefficient share option scheme with an Enterprise Management Incentive Scheme (EMI) and an Approved Option Scheme enabling participants to enjoy significant tax benefits. In addition, we implemented a 6 monthly management bonus scheme linking the management team's bonuses to achievement of target profit.

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