GRG Remuneration Insight 137

by Denis Godfrey, James Bourchier & Peter Godfrey
16 February 2022

Introduction

Employee share ownership plans (ESOPs), also known as employee share schemes (ESSs), exist in almost every ASX listed company, yet we find many new clients have been paying at least 43% more than they need to for their equity-based remuneration, by failing to set up the systems and processes needed to claim a tax deduction, or maximise the value of the tax deduction. When we start to scratch the surface on how ESOP administration has been handled by new clients coming to us for help, we often find a stressed-out HR incumbent struggling to manage administration complexity, which may even be sighted as a barrier to broadening ESOP participation that can enhance the benefits for all stakeholders. In this article we highlight the key bear-traps, missed opportunities and issues that often makes ESOPs seem harder and more expensive than they need to be, and undermine their desired impact. We also share a range of simple, cost effective and easy to implement solutions to these problems that can make ESOPs and equity-based remuneration the most attractive form of remuneration. As equity remuneration rises in prominence, with a raft of companies introducing equity as part of fixed pay to address the COVID-19 crisis and skills shortages, these matters can become a key attraction and retention issues, most prominently in the technology sector.

Need advice on ESOPs?

Unlock untapped opportunities in employee engagement and productivity by implementing an ESOP as part of your rewards and benefits program.

The BoardRoom dashboard

These images show what participants will see when they log into BoardRoom’s EmployeeServe, a powerful modern online digital equity platform. For more information contact BoardRoom directly.

The EmployeeServe login and dashboard
The BoardRoom EmployeeServe interface

(Click images to enlarge)

Find out more

Learn how to take full advantage of the rapid changes in employee share ownership in an information-packed webinar, co-hosted by GRG, BoardRoom and Remuneration Technologies.

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