Many ESOPS have been designed without sufficient thought on the impact of vesting on the company. Vesting can have a significant impact on the company’s liquidity as well as on the retention of key employees. Furthermore, the BEE points of the company may be severely eroded. After having implemented over 30 ESOP’s, Ownership Solutions provide a comprehensive service whereby we would provide an analysis that would take into account the current rules of the trust deed.
A report will be prepared highlighting the effects of the current trust rules on:
- Liquidity risk with reference to vesting rules, asset price reference and funding;
- Taxation and its effects on vesting;
- Vesting and its effects on retention;
- New entrants – attrition and new acquisitions.