WHAT ARE THE KEY RULES?
To be eligible, a company must be private and meet the definition of an SME – less than 250 employees, turnover under €50 million and balance sheet total of less than €43 million. A company must either be resident in the Republic of Ireland or based in an EEA Member State and carrying out business here through a branch or agency. Originally, only full-time employees could participate, but as noted, that rule has been extended to include part-timers. Originally, options were not allowed to exceed 50% of an individual’s salary, but this limit was subsequently increased to 100%.
WHAT ARE THE ADVANTAGES FOR THE COMPANY? Schemes such as this can be lucrative for employees and as such are regarded as an effective way to recruit and retain key personnel. The interests of management and employees become more aligned, with all actively incentivised to ensure that the company performs as well as possible.
WHAT TYPE OF COMPANY DOES THIS SCHEME BEST SUIT?
This scheme is specifically designed for SMEs.
There is no upfront cash outlay for the employer.
Employers make no PRSI contribution.
19
Powered by FlippingBook