What is an ESOP?
A structured plan to provide employees with equity in your company.
For the right companies, an ESOP is a powerful tool to align the interests of your employees with the goals of your company.
A correctly structured ESOP can help you:
✓ Get your team invested in your company, not just as employees, but as owners in its future success
✓ Attract and retain talented staff
✓ Improve productivity and profitability
✓ Engage employees in the big picture of your company
✓ Provide a way for employees to build long-term wealth
mi-fi’s ESOP approach
Our approach is holistic, meticulous and ongoing. We’ll design an ESOP that considers all the unique needs of your business and employees.
We take the time to educate all parties involved to establish company wide buy-in and ensure the ESOP delivers its intended result – a motivated team.
Tax and disclosure are complex topics when it comes to ESOPs. By engaging mi-fi’s team of experienced finance experts, you are investing in getting your ESOP right from the start.
Some companies and their employees may be eligible for concessions under income tax laws.
Use our free pre-assessment tool to instantly see if your company is eligible to use the Startup Concession.
How the process works
We take the time to first assess whether an ESOP is appropriate for your business. We then educate you on all of the key aspects and check if you are eligible for the Startup Concession.
There is no one-size-fits-all approach when it comes to creating an effective ESOP. We sit down with you to understand what makes your business tick and then we devise a customised employee equity strategy to serve your needs.
We take your employee equity strategy, prepare the necessary documentation and make sure all the necessary steps are taken to implement it. We are big on explaining the ‘why’ and ‘how’ each step of the way, so you and your team are fully invested in the ESOP.
Your ESOP is a dynamic tool, not a ‘set and forget’ activity. Employee equity is only successful where there is transparency with employees and ongoing management of compliance obligations. We support your ESOP’s success by helping you manage these elements.
Fixed at $1,500
✓ ESOP suitability assessment
✓ Review of company’s eligibility for Startup Concession
✓ Letter of advice outlining eligibility, suitability and implementation plan
✓ ESOP education briefing to owners
✓ Work with you to develop ESOP strategy, unique to your company
✓ Outline and manage implementation of ESOP
✓ Concessional valuation of shares for the Startup Concession**
✓ Preparation of tailored ESOP documentation for legal review*
✓ Set-up options register
✓ Facilitate initial offers of option to employees
✓ Initial briefing to current employees, covering key aspects of the ESOP
✓ Facilitating further offers to new or existing employees
✓ Maintaining options register
✓ Assisting with the exercise of options by employees
✓ Annual valuation of options to be used for new offers**
✓ Annual update to employees on the status of their vested options
✓ Support for questions about the ESOP from management and employees
✓ Preparation and lodgement of annual report to employees and ATO
*Whilst we provide complete documentation in line with the suggested Employee Equity strategy, we require that this documentation is reviewed by a lawyer to ensure it is drafted correctly in line with your company’s other governance documents. We can recommend lawyers who are familiar with our process and documentation, however, we are happy to work with your existing lawyers. No legal services are included in our fees.
**The Net Tangible Assets method is used based on the Company’s financial statements for the most recent financial year. Where any other method of valuation is considered we will provide a quote.