Enterprise Management Incentives

MORI has undertaken a report for HM Revenue & Customs into the use and impact of share option schemes under the Enterprise Management Incentive scheme (EMI).

The report's conclusions agree with our own experiences that EMI is the best suited of share option schemes for a company with a relatively small workforce and which is looking for an effective means of retaining valued personnel.

There is also support for our view that the longer established companies, with older management, are the least aware and receptive to the use of EMI. This remains a shame in those instances where EMI can prove a useful tool in succession and exit planning, although the lack of awareness may just be indicative of the lack of attention to forward planning undertaken by owner managed businesses generally.