At Herrington Carmichael our specialist corporate incentive scheme solicitors are able to explain and assist in the design, structure and implementation of growth shares for your business.
Growth Shares typically amplify in value with the company’s success, hurdle shares trigger additional benefits upon achieving performance targets and flowering shares escalate rewards tied to predefined milestones in the business.
These shares are often issued to key employees or executives, as a way to align their interests with the long-term success of the company creating motivated in employees and high retention rates.
The shares may have specific periods attached to them, such as a vesting period or performance targets that are required to be achieved.
Our recent experience has often seen companies link the growth shares to exit events, so that the shares come into play on certain exit events, such as a sale of the business, entitling the holders of the shares to receiver a portion of the proceeds of the sale.