Share Option Schemes

Are you considering issuing Shares to your senior employees or Directors?  What are the Pros and Cons of issuing Shares or Share Options?  What are the possible ‘Bear traps’ that many unwary business owners fall into?  As virtual finance directors we bring business owners up to speed with a briefing white paper, design the best scheme for you using our decision tree methodology, before co-ordinating professional support to efficiently implement your bespoke scheme.


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 often works with Business Owners to implement:

  • Motivational management incentive schemes linking senior managers bonuses to achievement of profit targets
  • Share Option Schemes – 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

The Business Owner wanted to step back from the business. We helped design and implement an EMI Share Option Scheme which helped align the key Manager’s objectives with the Owners goals. This together with full delegation of the day to day management, released much time for the Business Owner and also provided reward for the loyalty of key managers.

Finance meeting

“After a thorough briefing on Share Option schemes, our VFD James helped us to design an EMI Share Option Scheme which met the needs of our key employees, helping to lock them into the business, while…” Read More >>

Stuart – MD and business owner

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