Flowering Shares

Flowering shares, a dynamic form of equity-based incentive plan, are a win-win arrangement for companies and employees. These shares essentially 'flower' or grow in value as performance targets are achieved, fostering a thriving environment of shared success. As employees actively participate in the company's growth, their shares increase in value, aligning their interests with the company's performance.

Why are flowering shares the blooming future of employee incentives? Firstly, companies can incentivise their workforce without worrying about immediate cash payments or diluting ownership. Secondly, employees, becoming shareholders at minimal personal financial cost, stand to gain significant rewards as the company prospers.

The versatility of flowering shares is another advantage. As these share schemes are outside the purview of HMRC tax-advantaged share scheme requirements, they offer considerable flexibility to employers. Also, the existing employee shareholding isn't affected by dilution initially, protecting the interests of existing shareholders.

Despite these advantages, flowering shares require careful planning. Key steps include defining measurable performance targets, consulting with tax experts, and establishing clear communication plans. These measures will help avoid common pitfalls, such as disputes due to unclear targets or unexpected tax liabilities.

Flowering shares are often similar to growth or hurdle shares, and can be linked to various events like exceeding profit targets or achieving a minimum exit price. These shares may initially have limited rights, such as no dividend or voting rights, but 'blossom' over time or following certain events, potentially offering substantial capital returns.

For employers considering flowering shares, we recommend seeking professional assistance to navigate through this process. Our team of experts can guide you on various employee incentive arrangements, including EMI share options, employee ownership trusts (EOTs), growth shares, hurdle shares, non tax-advantaged share plans, and phantom share schemes. We're here to help at every stage of your business journey, ensuring your flowering shares scheme benefits everyone involved.

Let your company and employees bloom together with flowering shares. Get in touch with us today to explore this exciting opportunity.

Helium are experts in Flowering Shares, Growth Shares and all Employee Incentive Arrangements including EMI Share Options, Employee Ownership Trusts (EOTs), Hurdle Shares, Phantom Share Schemes and Non Tax-Advantaged Share Plans

‍

About Helium Law

The modern law firm that's fast, low-cost and transparent.

‍

Helium Law is a new kind of law firm that uses AI technology to save time, reduce admin and give everyone a better experience and service. The more effectively our lawyers and clients work together in the Helium app, the more they earn or save. We ensure transparency on pricing by estimating case costs up front and tracking every minute real time in our platform so you stay in control.

‍

Get in touch and join the revolution.