Kano Computing Limited: developer and manufacturer of a computer kit you build and code yourself
Kano has a large and growing number of employees who are key to its business, whom it wants to have an ownership stake. Like many technology companies, it needs to combine a sustained period of investment and development with long term employee commitment and engagement before it becomes profitable, making longer term rewards through share-based incentives a key part of its strategy.
How we helped it achieve its objectives
We helped Kano design and implement an EMI option plan, under which participating UK employees have been granted options to acquire shares in the future, paying a price based on value at the time of option grant. By making them EMI options, the objective is that the tax employees will eventually pay on their option gains will be capital gains tax, potentially at a rate of 10%, rather than income tax.
Our work has included:
- Helping the Company’s design an option plan that matches its objectives
- Preparation of option agreements for participants
- Looking after registration and record keeping with HMRC
Benefits for the Company
Kano’s share option plan enables each of its participating employees to acquire an ownership stake whose value is directly linked to the company’s growth in value from the day when they become a member of the plan. Making the options EMI options is designed to ensure that there is no financial cost to participants other than capital gains tax on eventually selling their shares, at an advantageous rate and at a time when they will have the funds to pay the tax.
If you would like to explore how employee ownership or an employee share scheme might be introduced in your company, please contact us for an initial discussion.
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