Employee shareholder agreements — the potential gains
Since September 2013, employee shareholder agreements have enabled companies to introduce a new type of employment status into their workforce.
By entering into an employee shareholder agreement, an individual will acquire employee shares (worth at least £2,000 at the time of acquisition) in the company employing them or in its parent undertaking. In return for the employee shares, the individual entering into the employee shareholder agreement will forgo and vary limited, specific employment rights.
Employee shareholder agreements have become increasingly popular with start-up businesses and private equity companies that expect to make substantial capital gains in a short to medium period of time. In particular, many new investment companies are identifying employee shareholder agreements as a way to attract and incentivise employees to produce good results. This is because good results are likely to increase the value of the company and, in turn, the value of the employee shares will increase…
Click on the link below to read the rest of the Winckworth Sherwood briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.