Employee Share Incentives
Share incentive schemes can be an effective way to attract, retain and motivate the people your business needs. We help you to design, implement and operate all forms of employee share participation, and avoid the potential pitfalls.

Employee share incentive schemes aren’t just for big businesses: our clients in this area include start-ups and owner-managed companies, as well as large organisations backed by private equity and those listed on the FTSE 100. A good scheme has many benefits: it helps the business to recruit and retain good staff; encourages employees to take a long-term view; aligns employees’ interests with those of the owners; and can be a tax-efficient way to reward people.

To achieve all those benefits, though, many things need to be properly handled. Correct design and implementation is key to ensuring that the scheme is highly effective, both on Day One and for the foreseeable future. Effective ongoing management includes dealing with grants, vestings, and people leaving the business. Evolving your arrangement to adapt to changing circumstances such as the business growing is also essential, especially if that involves going international. We help our clients with all of this, often working with our colleagues in the Corporate Finance, Employment, Pensions and Tax teams. We also advise on other issues such as tax, governance, shareholder engagement, and the impact of big events like an asset sale or IPO. These are all easier to deal with if the scheme is well designed and managed at the outset.

Our expertise includes:

Plan design and implementation
Ongoing operation and adaptation
Expanding schemes to include overseas employees
Advising overseas companies on implementing share plans in the UK
Tax advice from both an employee and employer perspective
Advice on executive compensation and corporate governance
Advice on shareholder engagement
Assistance with the impact of significant transactions such as a change of control, asset sale or stock market flotation (IPO)

Meet our key contacts

Gavin Charlton

Partner

Meet our full team

Hannah Bruce

Senior Associate

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Rodger Cairns

Partner

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Gavin Charlton

Partner

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Joanne Griffin

Consultant Solicitor

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Related articles and insights: Employee Share Incentives

19 August 2025

Understanding growth shares

Contributor: Gavin Charlton

Using equity is a tried and tested method to help recruit, retain and incentivise key employees and align their interests with shareholders. One commonly used structure involves 'growth shares'.

30 July 2025

Understanding vesting schedules: what employees need to know

Contributor: Gavin Charlton

Share Schemes are a great way to retain, incentivise, motivate, and reward key employees within your business. However, they cannot reach their greatest potential unless the employees themselves understand how the scheme operates and how vesting schedules work. Partner Gavin Charlton and Trainee Taylor Foster break down the vesting process and different alternatives commonly seen in practice.

11 June 2025

Preparing for the July ERS reporting deadline: common pitfalls to avoid

Contributor: Gavin Charlton

If your company or business has allotted shares or awarded rights to acquire shares to employees or directors, you are likely required to file an end of year Employment Related Securities return.

9 June 2025

The role of LTIPs in rewarding long-term performance

Contributor: Gavin Charlton

Long Term Incentive Plans (LTIPs) are a great way to reward employees who have invested their time and effort into a business, while also promoting the success of the company itself. This article will look at LTIPs and how they can be used to reward long-term performance within business and in turn, retain key employees.

24 April 2025

International Workers’ Day: How share plans empower employees globally

Contributor: Gavin Charlton

1 May 2025 marks International Workers’ Day, an annual celebration of the progresses made within the labour movement over the years. In light of this, Director Gavin Charlton and Trainee Taylor Foster explain how share plans can empower employees globally through aligning their interests with the company, raising engagement, and providing tax-effective financial rewards.

7 April 2025

Employee loans: Increase in HMRC’s official rate of interest to 3.75%

Contributor: Gavin Charlton

From 6 April 2025, HMRC’s official rate of interest will increase. In this brief article, we will provide guidance for employers on which agreements will be affected and what they should look out for.

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