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Monthly Archive for: "May, 2015"

Changing The Way Managers Are Remunerated

Business owners often look to different alternatives to motivate and retain staff. One such method is to provide equity (ie shares), and, over the past few years I have written a number of articles about how business owners can best remunerate their key managers and structure long term incentives in a tax effective manner. Recently, the Australian government announcement proposed changes to the Australian tax legislation on employee shares schemes and I have been asked whether this provides an opportunity. The bad news is the proposed legislation is relatively commercially useless for most established businesses. It has been designed for […]

Remunerating Key Managers – What Structures Are Available?

One of the most important decisions for private company owners relates to how best reward its key managers. Many owners find it challenging to retain key staff and are often considering how best to develop an incentive plan to assist in incentivising selected key employees to grow the value of the business and achieve an exit. It is common across many of the private businesses for the top performing managers to request “equity” in the business as a form of incentive when commencing employment. Whilst this can be achieved in a tax effective manner for the manager, not all owners […]