Corporate Business Solutions
Ownership Solutions will prepare a full scheme plan and model with full rules. In our experience, it is only through modeling the scheme to termination, that the human resource impact of the rules can be properly understood. Our document will place management in an empowered position to decide on the final rules.
We will prepare a financial model that will allow management to see the impact on both an individual employee and the scheme based on:
- Allocation Rules
- Impact of good and bad leavers
- Growth in asset size
- New entrants
- Potential liabilities to good leavers
- Actual payout of vesting
- Administration and communication impact
The impact of the variables on a scheme of this size can be substantial. The incorrect initial allocation and rules may result in an exodus of employees, or a significant mismatch in expectations amongst the employees. The results of this modeling will be used as the basis for the communication of benefits to the employees. We will prepare a comparison matrix based on the outcomes above to compare the two schemes in terms of:
- Taxation
- Ease of administration
- BEE compliance
- Funding
- Communication
- Overall benefit and cost to the employees, the company and the shareholders
This matrix will clearly set out the benefit and optimal scheme for the structure
We will also prepare a comprehensive document that the attorneys can incorporate into the Rules of the scheme. It will deal with all the issues required to build a sustainable scheme that meets the objectives of the various stakeholders.
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