A simple approach is to give shares to an employee outright. However, whilst this may achieve the motivational objective of the company it may not be an effective retention tool. This is particularly true if there is an available market for the shares. An alternative which satisfies the retention objective is the use of restricted shares.
Tax advantages of restricted shares
How can we help?
Our dedicated Compensation & Benefits specialists can meet with you to identify the key objectives of a proposed plan and assist in drafting and implementing a plan.
For more information on the above download a copy of the Restricted share plans guide.