Retaining Talent – EMI Scheme

The Enterprise Management Incentive (EMI) scheme is the most widely adopted share option plan in the UK. Approved by HMRC, it allows selected employees to receive share options without triggering immediate tax liabilities, making it a highly efficient tool for both businesses and their teams.

These options give employees the right to purchase a set number of company shares at a fixed price in the future. They may exercise their options after a vesting period or once specific performance goals are met. Employers can tailor these conditions to company-wide objectives or individual performance metrics.

We provide expert advice and end-to-end implementation of schemes designed to:

• attract, retain, and incentivize high-performing employees;
• maintain flexibility and control over the options granted (e.g. applying performance or time-based conditions);
• enhance reported profits by offering options instead of increasing salary;
• boost competitiveness with a well-rounded reward structure that includes ownership potential.

When share options are issued, a market value is agreed upon. If the employee pays this value upon exercising their option, there is no income tax due — even if the share price has significantly risen by that point.