If you want to introduce a scheme designed for all employees, then you will most likely opt for a Revenue-approved scheme – an Approved Profit Sharing Scheme (APSS) or a Save As You Earn (SAYE) scheme. The Revenue-approved schemes must be offered to all employees who meet the inclusion criteria, with time served being a typical point on which to peg eligibility. The all-employees clause means that APSS and SAYE schemes are most commonly associated with public companies, large businesses, and Irish subsidiaries of multinational companies. If you want to be able to pick and choose which employees to invite into a share scheme, then you will opt for a non- approved share scheme, as these provide the flexibility you desire. A Restricted Share Scheme (RSS) allows a company to target key senior personnel for a share incentive plan with a view towards retaining those individuals into the medium and long-term. The Key Employee Engagement Programme (KEEP) was specifically introduced by the Government in 2018 with a view towards helping SMEs to recruit and retain key personnel. The scheme seeks to assist SMEs in competing with larger companies for talent by allowing share options to be offered under relatively generous tax terms. If you want to secure the benefits of an employee share scheme, but don’t want to issue any shares, then you will opt for a phantom scheme. These schemes mirror the structure of an actual share scheme and track the value of company shares over time, but at the end of the plan participants receive a cash bonus instead of shares. Any company can look to implement an unapproved scheme, but in practice it tends to be a little more complicated for private companies, as they will sometimes need to overcome issues around share valuation and the market for those shares. Generally, share option schemes are most closely associated with startups and companies still establishing themselves, as early in a company’s life money will be tight and so offering options is an effective alternative to unrealistic overly generous salaries. The flipside of that point is that share awards are more common among large and established businesses.
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