Cash based incentives/phantom share plans
Shares are not always an appropriate incentive vehicle, particularly in the absence of a route for shareholders to dispose of their holdings by way of a stock market listing or a sale of the company.
We design and implement all kinds of cash-based incentive plans including innovative phantom option and performance share plan arrangements, profit sharing arrangements, bonus and commission structures (including sales incentives), retention incentives and so on.
Cash incentives deliver flexibility and ease of use but tend to lose out to other forms of reward in tax efficiency and accounting cost. Where appropriate, we help our clients identify how the cost of existing employee incentives could be deployed to deliver more tax efficient pay and benefits.