THE KEY EMPLOYEE OPTION PLAN

The concept involves the establishment of a special purpose employee option contract (KEOP). The Employer makes tax deductible contributions to the Plan Trustee to enable the Trustee to purchase the options from the Employer at their value determined by the RSG Employee Equity Valuation Calculator. The KEOP options are purchased by the Trustee and allocated to participating Employees, on the instructions of the Employer on the basis of terms of issue stipulated by the Employer’s Board of Directors. The plan is especially suited to unlisted companies wished to extend equity to its Employees.

EMPLOYER TYPE

• Private Companies.
• Public Companies.

STRATEGY

• Retention Strategy.
• Succession Planning Strategy.
• Wealth Creation.

ADVANTAGES

• The plan is flexible and enabling – that is, it suits a wide range of strategic remuneration applications.
• Designed for Key Employees.
• Rights to shares controlled by Terms of Issue of Share Options as instructed by the Employer.
• Funding by the employer is made as fully expensed contributions and cancellations payments, which meet the new AASB2 Accounting Standards.
• Termination not necessarily a trigger for benefit payments.
• Fully outsourced administration.