Restricted share plans

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Restricted share plans

The purpose of implementing employee share schemes will often be two fold, with an employer seeking to both incentivise and retain employees.

A simple approach is to give shares to an employee outright. However, whilst this may achieve the motivational objective of the company it may not be an effective retention tool. This is particularly true if there is an available market for the shares. An alternative which satisfies the retention objective is the use of restricted shares.

Tax advantages of restricted shares

  • The taxable value of the shares can be reduced based on the restriction on the shares. 
  • Growth in the value of the shares following acquisition will be subject to capital gains tax (33%) rather than income tax,USC and PRSI. 
  • No employer PRSI is payable.

How can we help?
Our dedicated Compensation & Benefits specialists can meet with you to identify the key objectives of a proposed plan and assist in drafting and implementing a plan.

For more information on the above download a copy of the Restricted share plans guide.

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