Employee Share Ownership Plans (ESOPs)

What is an ESOP?

An ESOP is a discretionary trust arrangement, under which the trustees purchase and hold shares in the company that established the ESOP (“the Employer”) for the benefit of its employees.

Why do it?

  • ESOPs are usually established in parallel with other employee benefit programmes, such as conventional share option and profit sharing schemes. Whilst the trustees of an ESOP will be independent of the Employer, nevertheless the Employer will want to ensure that the ESOP is operated in conjunction with any such other benefit programmes
  • An ESOP can be an attractive means for an Employer to establish a share related incentive programme for management and staff
  • Many large corporations – not just UK companies but also businesses from other jurisdictions – have established ESOPs in offshore locations, such as Jersey, because of the freedom from tax given to the trustees and the confidentiality of information on the ESOP

How to do it

Volaw Group, together with its associated law firm Voisin, is able to advise upon and assist in establishing ESOPs in Jersey.

Volaw Group is also able to provide trustee services for ESOPs as well as managing them.

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.