An EMI scheme is also a good way of retaining key employees, particularly at critical times such as the early stages of your company or when you are working on a major project. By turning cash benefits into future share rewards, an EMI can effectively lock an employee in to your company until the point of a sale or another significant milestone is reached.
You may also want to reward loyal key employees for their efforts in achieving a sale, effectively giving them a share of the proceeds.
It is important to bear in mind that once an employee exercises their share option, they become a co-owner of the company and their rights must be respected.
One of your first decisions will be the value to place on your company and its shares. This can be very subjective, which is why it is important to have the right advice from an accountant with experience of share schemes.
