The Enterprise Management Incentive (EMI) scheme has long been one of the most effective and tax-efficient ways for growing businesses to attract, motivate and retain key talent. But for many companies, EMI has simply fallen off the agenda, often because they assumed they had outgrown the qualifying criteria or because their scheme was established years ago and has not been revisited since.
That may now need to change.
In our video, Kate Schmit, Head of Corporate Tax & Incentives at Stevens & Bolton, explores the most significant changes to EMI in a generation and explains why many businesses should be taking a fresh look at their share incentive arrangements.
Recent reforms have substantially expanded access to EMI and as a result, businesses that may previously have fallen outside the scope of EMI could now find themselves eligible once again.
However, eligibility is only part of the story.
Kate discusses the strategic role EMI can play in supporting growth, particularly for ambitious businesses seeking to recruit and retain high-performing employees, align management teams with shareholder objectives and create long-term value.
The video also highlights some of the common pitfalls that can arise as businesses evolve. Acquisitions, joint ventures, changes in business activities and corporate restructuring can all have unintended consequences for EMI eligibility. In our experience, many businesses are unaware that changes made elsewhere in the organisation can impact both future grants and existing option arrangements.
As Kate explains, EMI should not be viewed as a "one and done" incentive arrangement. The businesses that derive the greatest value from equity incentives are typically those that review them regularly, assess whether they still support strategic goals and ensure rewards remain focused on the people driving future growth.
Whether you already operate an EMI scheme, previously assumed you no longer qualified, or are exploring share incentives for the first time, now is an ideal opportunity to reassess your position. We’d love to talk to you about it.
