Executive Share Schemes
Share options and Executive Share Schemes (ESS) can provide significant financial benefits for executives and senior managers.
However, there are inherent risks that need to be considered and ongoing vesting and tax matters that require close attention.
For time-poor executives and senior managers, understanding the taxation implications among other matters to make the most of wealth creation opportunities can prove challenging. Failing to pay timely attention to a range of ESS matters can deprive executives of the full wealth potential of their ESS and remuneration package as a whole, while putting them at risk of paying more tax than is necessary.
Our ESS advice and management services include:
- Tax considerations
- Vesting criteria and exercising
- Dividends
- ESS and overseas secondment
- Matching schemes
- Funding options for future tax liabilities
- Diversification: Investment portfolio balance considerations in context of exposure (or over exposure) to shares held in the employer company
- Administration services that can include compiling records and reconstructing historical ESS information to clarify after-tax consequences and possible strategic actions for minimising tax
- Maintaining long-term cost-base records for shares retained for meeting your capital gains tax obligations
- Advice regarding Australian and international tax strategic implications
- Opportunity to discuss an Executive Share Scheme offer from an employer
- ESS and redundancy