about the rm2 partnership ltd presentation 1212010
DESCRIPTION
Increased income tax and NIC mean businesses should be looking at equity planning as a way to conserve cash, reduce tax and recruit, retain and motivate staff. RM2 can provide the specialist advice you need.TRANSCRIPT
Scotland
opportunity growthprofit
RM2 Presentation
Scotland
As we progress in 2010 – what are your concerns or opportunities?
Retaining your key staff - your “profit makers”
Cash Flow concerns Growing your organisation Your own exit strategy or succession
plan Overall tax efficiency
Scotland
What can RM2 offer?
attract and retain staff provide effective incentives foster team work and
commitment conserve cashsave taxsuccession plans / exit strategies
Ways to:
ScotlandWhy RM2?
• design, implement, administer• 184 corporate clients, 141 trusts• multidisciplinary, holistic• quality driven
BenchmarQ gold customer service award
ISO 9001 accredited
Investorin People
the share plan specialists
Scotland the need………
• tough times and tough measures• control of cash flow • share based rewards • reduced NICs and tax implications• employees motivated to stay for the
upturn• key managers retained
Scotlandthe steps……objectives
claritycommitment
focus – the employees
Scotlandimplementation
simplicity of design
one adviser
integrated design and administration
Scotlandcommunication
mutuality
staff access to consultants
fun
Scotland What can we use?
gift• Share Incentive Plan (SIP)• Discretionary trust (EBT/LTIP)
option• Enterprise Management Incentive (EMI)• Company Share Option Plan (CSOP)• Unapproved Share Option Plan (USOP)purchase• SAYE Share Option Scheme (SAYE)• SIP purchase and matching• Joint, Flowering or Deferred Purchase
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Succession Planninga typical exit scenario
• founders sell shares to trusttax-efficiency for founders?
• trust offers shares or options to employees
tax-efficiency for employees?
• corp. tax relief on appropriation/ exercise
tax-efficiency for company?
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trust company
founders
employees
cash
shares
cash
shares
Scotland……..the outcome!!• Key players are in line with
shareholders…..aspirations are shared• Profit centre personnel enjoy shares in
their Company• Support staff are part of their Company• Loyalty and effort rewarded• Staff motivated by Company development
and success• Opportunities for MBO MBI
Scotland…….the tax savings• For most of the HMRC approved and
registered plans:no income tax 22 – 40 or even 50 per
cent.no employer NICs – 12.8 per cent.no employee NICs – 10 or 1 per cent.corporation tax reliefONLY Capital Gains at 18 or 28 per
cent. or lower with available reliefs.
Scotland…..the important steps• Discuss objectives• Decide the most effective arrangement• Summary• Review• Agree plans and Terms• Review Articles• Valuation• The plan and employee documents• The roll-out• Administration
Scotland…considerations
tax law
company law
employment law
valuation
accounting standards
HR considerations
trust law and administration
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process
objectives
fact-find
design
review
communicate
implement
administer
adviser meeting, internal review
adviser meeting
adviser mtg, remuneration ctte, Board
co resolutions, IR approval/registration
employee presentations, press, intranet
draft documentation, terms, pricing
monthly systems, helpline, communication
ScotlandClient Base
• More than 180 clients – and growing rapidly
• Variety of industry sectors
• Public and private companies
• Competitive fee scales
• Preferred advisors for organisations such as Intellect, the FDC and the IIB.
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RM2 Details
Fact Sheets Available
Employee Share Schemes – A Guide for Directors - the 2008/09 Edition
Website: www.rm2.co.uk
Email Helpline – [email protected]
Telephone Helpline – 0208 949 5522
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Share and share options
• the possibility of having your cake and eating it too!!
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Questions?
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The RM2 Partnership
the share scheme specialists
BenchmarQ gold customer service award
ISO 9001 accredited
Investorin People