- Enterprise Management Incentive Plans provide for the grant of flexible, tax-advantaged share options and are designed for growing companies with fewer than 250 employees and gross assets not exceeding £30 million;
- EMI options can be granted at a discount to market value;
- Eligible employees can receive EMI options worth up to £250,000 in any three-year period.
WHAT ARE ENTERPRISE MANAGEMENT INCENTIVE PLANS?
Under an Enterprise Management Incentive (EMI) Plan a company can grant tax-advantaged share options to selected employees. The rules governing the terms of EMI options are very flexible which means they can be tailored to deliver the desired incentive and reward. The exercise price of an EMI option can be at, above or below the market value of the shares at the time the option is granted. Unlike other forms of taxadvantaged share incentive, an EMI option does not have to be held for a set period of time to receive favourable tax treatment on exercise.