So your business is pre trading or in the early stages of trading, but you want to acquire and retain essential talent and perhaps external specialist advice, despite not having a significant budget. In this scenario, you might consider stock options.
Start ups and early trading businesses often look at stock option grants as a way to effectively establish their dream team of employees and advisory board members by offering them equity in the business. The idea behind offering stock option grants is to attract top talent by providing them with an incentive i.e. a potential financial gain if they stay with the company and contribute positively to the company’s growth.
For your employees, considering stock options means they are getting a share of the company they work for rather than just a monthly payslip. This can be attractive to people who want to invest in their future and the success of your business. It can also attract employees that may not have come to work with you otherwise.
For your specialist advisors, they may even prefer stock options in place of straight equity or cash compensation. In their minds, they are receiving a stake in the company in exchange for their knowledge and experience, without even having to work in the business full-time.
But what are the different types of stock options? How do you make sure you get the stock option agreements right? What are the implications of getting them wrong? What are the tax implications? What happens when you bring an investor onboard?
To cover these issues and more, we are delighted to welcome Kathy Hills, Partner in Penningtons Manches Cooper, to join us as specialist for this webinar. Kathy’s clients are predominantly growth companies and she regularly advises on tax efficient investments, employment status for tax purposes, incentivising employees, and structuring for exit.
Who is this webinar series for?
This webinar series has been specifically designed to meet the needs of businesses looking for equity investment, be that from a venture capital firm or business angel. We have essentially invited local specialists and investors to co-host these sessions which will consist of approx. 30 mins presentation and 30 mins Q&A.
You may or may not have already attended OxLEP’s other investment-related events i.e. Investor Pitching Fast Track, Pitch to the Panel, or Scale up and Investment Power Hours. Where ever you are on your investment journey, we welcome you and urge you to register for all 4 webinars in order to gain optimum insight and value.
Remaining webinars in the series
This webinar is part of a ‘Raising Equity Capital’ series, dates/times of remaining webinars are as follows:
- Wednesday 8th March – 12.00-13.00: How a business is valued for investment or sale
- Wednesday 22nd March – 12.00-13.00: SEIS/EIS approval explained
For more information about the eScalate programme, visit: www.oxfordshirelep.com/escalate
Please note that these 1:1 sessions are part-funded by the European Regional Development Fund (ERDF) and are delivered as part of the eScalate programme to help SMEs. By engaging in this programme you are being offered assistance under the De Minimis regulation which allows a company to receive up to but not exceeding €200,000 of public funding (at the applicable exchange rate) of De Minimis aid over a rolling three-tax year fiscal period. This de minimis declaration does not cover undertakings engaged in: the primary production of agricultural goods and fisheries/aquaculture, road freight, services of general economic interest and export related activities and activities favouring domestic over imported goods. Please note, support cannot be given to undertakings (businesses) in difficulty. In order to receive support from this programme, you will be required to complete an application form and other relevant documentation.