Pay Frameworks

The focal point and most expensive element of reward packages today is still base pay and yet it is the element which is most often overlooked when it comes to review and design as it wrongly considered to be fixed and impossible to alter. However, there are many options and alternatives available to employers to help ensure that the base pay approach is fit for purpose, compliant with transparency regulations and adding value to the business and employees.

How we can help

We can support you in this space by reviewing and helping to refine your current approach on:

• Base pay setting
• Base pay progression
• Base pay management
• Selection and use of appropriate benchmark data
• Communication of base pay principles
• Compliance with any pay transparency requirements (current or expected)

Annual Bonus

Annual bonus schemes are often criticised for lacking impact and being a ‘waste of money’ and energy, however they remain popular with employees who enjoy an annual ‘burst’ of cash. It is true that a poorly designed scheme can create a culture of entitlement through its lack of variability each year and it can be perceived as ‘free-money’ by employees who feel they can do little to actually influence their award. However, it does not have to be this way as a well-designed scheme can …

– provide a unifying force that gives a team a shared sense of purpose

– be a useful tool in delivering an organisations desired culture and values by reinforcing and rewarding them in addition to the any quantifiable outputs needed

– help employees to feel engaged with the business and more involved in the success (or otherwise) of the business each year

– provide employees with a clear focus throughout the year and create a win:win alignment with an organisation’s objectives and goals

How we can help

We are able to review your current approach and provide pragmatic and business driven evolutions on topics including:

• Core scheme design
• Performance gearing (the pay:performance curve)
• Metric/ dashboard selection
• Eligibility criteria
• Communication and transparency

Increased pay transparency requirements are signalling the end of incentive plans that involve a high degree of management discretion. We are working with clients to develop schemes that have clear, easy-to-communicate criteria and which also give the business the flexibility and protection needed to reflect the performance of the business.

Share Schemes and Stock Plans

Our team of experts can work with you to create an incentive structure that is both tax efficient and compliant while being attractive to employees.
We work with many well-known UK and international organisations, supporting them with their UK and international share plans, incentives tax planning and compliance obligations. We support many executives of listed and private companies, providing them with the highest level of service.

How we can help

We are a ‘one stop shop’ advisor and provide both tax planning and the ongoing reporting including personal tax returns, and employer obligations such as Employment Related Securities (ERS) reporting.

Our Services Include

Tax advice & planning

• Key tax and structuring matters for individuals and companies
• Tax efficient equity investments (EIS/SEIS)
• Disposal of company shares and company share buy-backs
• Personal and family investment structures
• Corporate restructuring, expansions and demergers
• Tax implications of equity awards for executives, directors, employees and employers
• Tax planning and tax beneficial elections
• Expanding into new countries
• International tax planning
• Financial modelling on the impact of the incentive arrangements

Stock plan design

• Employee equity incentive plans and share options
• Developing balanced and attractive reward schemes
• Share plan design, drafting and implementation
• Assisting with employee communications
• Reviewing client shares scheme plans, commenting on reportable/chargeable events and advising on related payroll procedures
• Implementation of employee ownership trusts including designing compliant bonus schemes

International stock issues

• Employment related securities reporting

Compliance

• Advising on corporate withholding requirements
• Payroll assistance and filings
•  Tax, social security, and reporting
• Cross-border reporting
• Accounting advice