Employee benefits are on the up
THERE has been an increasing trend over the last few years of employers wanting to promote loyalty and commitment through employee benefits, says Paula Keyte, senior manager, client services at Equiom.
These benefits can be offered by way of an employee benefit trust or employee qwnership trust structure and both can be tailored to meet the initial objectives of the employer. The types of benefit available may include lump sum payments, share options or share-awards – giving employees actual company shares rather than options.
The EBT or EOT is established by appointing a trustee who acts independently from the employer and administers the trust for the benefit of the employees. There are several advantages for these types of trusts. Firstly, the assets of the trust are held separately from the company’s assets and are therefore protected from bankruptcy. In the case of companies which are not publicly listed and no ready market exists for the shares, it allows for an internal market to be created. This can be useful when a company is working towards a trigger event such as a listing on a stock exchange.
There are even more advantages when using a Guernsey trustee. With its highly regulated financial services industry, and well over three decades of fiduciary services industry experience, Guernsey is best placed to assist any employer company, and their advisors, by catering to the unique needs of each employer’s circumstances.
Having served international businesses for decades, the Guernsey team has extensive experience in running employee benefit schemes.
n For more information on Equiom Guernsey and our expertise in this area, visit www.equiomgroup.com/guernsey.
