During the past decade, there has been an increased use by employers of equity-linked and other incentive plans to attract and retain key people. Many of these plans are quite complex and can involve several different jurisdictions and it is often sensible to organise such plans through a tax-neutral centre such as Jersey.
An important and growing element of our business is related to the establishment and administration of such employee benefit structures that are designed to provide tax-neutral benefit planning for individuals who are employed by corporations and other organisations.
These planning arrangements include:
- Jointly Owned Equity Plans An alternative to market value options where shares are acquired jointly by an employee and an EBT and on sale the employee receives the growth in value of the shares and the EBT receives the initial value.
- Employee Share Ownership Plans (ESOPs)A trust arrangement, under which the trustees purchase and hold shares in the company (the employer) for the benefit of its employees.
- Offshore Employment Companies These employ executives and sub-contract their services to the companies using their services.
- Deferred Compensation Plans Designed to help executives defer or avoid national and local taxes on their remuneration packages whilst working at home and abroad, by transferring deferred remuneration assets to the trustees of a Jersey discretionary trust.
- Offshore Pension Plans Providing an appropriate solution to the savings and pension requirements of executives who during the course of their working lives may be based in many different countries with different regulations on pensions.
We have established a dedicated team of professionals who are able to help you with establishing and administering all such employee benefit arrangements. For further information, please contact Mark Healey, Simon Perchard or Richard Fagan of Volaw Group.
Read our online Employee Benefits Group brochure here.