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Showing posts from July, 2017

The Benefits and Forms of an Employee Share Scheme

Employee share schemes provide opportunities for employees to own shares in the company in which they are employed. They create a means to provide employees with equity which enables a more direct incentive for growth than bonuses or general remuneration. Share purchase plans offer eligible employees the chance to purchase shares, sometimes through a loan from their employer. The shares are often paid for through salary sacrifice over a set period (for example, 6 months), or by using the dividends received on the shares. Some share purchase plans also allow employees to pay for the shares in full, up front.  Employees on higher incomes are often eligible to receive shares as a performance bonus, or as a form of remuneration, instead of receiving a higher salary.