GRG offers a comprehensive employee share ownership plan service
GRG has deep experience in developing ESOPs tailored to the specific circumstances and needs of individual ASX listed companies. Our comprehensive solutions cover the complete ESOP lifecycle of providing plan design options and recommendations, obtaining board and shareholder approval, arranging plan documentation, implementation and communication, liaison with stakeholders (including proxy advisors and the Australian Shareholders Association) and plan administration.
Employee share ownership plans that give your employees capital protection
The $1,000 tax exempt plan base level of ESOP remains inadequately low for most employees in terms of building significant ownership, participation and engagement. Hence, more flexible and tax-effective plans are needed.
In response, GRG recently developed a new-style ESOP based on salary sacrifice ensuring that amounts sacrificed by employees come with a capital protection mechanism even if the share price falls. This feature is specifically introduced to remove the main impediment to employee acquisition of shares: risk of loss. When combining it with regular affordable pre-tax savings via salary sacrifice, it makes this unique new style of ESOP the way to go for most ASX listed companies. Lastly, this protection is provided at nil cost to the company.
Employee share ownership plans with a difference
- GRG removed all major barriers to maximising employee ownership with no limits on amounts that can be sacrificed
- Our instruments are effectively as flexible as cash, because:
- They may be exercised at any time of the participant’s choosing, and
- No tax has to be paid by participants until exercise or sale.
- The instruments are designed to eliminate investment risk in that our default design includes a 100% capital protection guarantee of amounts sacrificed if the share price has fallen at the time of exercise.
- No private tax rulings are required, as our plans are not based on loopholes or principles that are likely to come under scrutiny from the ATO – we only use commonly accepted approaches.