Reward and Incentives


An effective reward plan is essential for the growth of any business and the provision of appropriate incentives can increase the success and profitability of all companies by attracting and retaining key talent.

For an individual the inclusion of an equity based arrangement in their pay package has the potential to become a significant and often valuable element of compensation. Accommodating such an arrangement without diluting the owners’ equity or disrupting the business can be achieved with careful planning.

For the company, as managers are recognised and rewarded as shareholders in the business, the reward can be directly related to the performance or the value of the business by encouraging them to contribute to growth and profitability. In addition, share incentives are one of the few non-cash benefits which are not liable to employer’s PRSI.

Potential issues

  • Your employee remuneration is currently only cash based and you are looking to do something different to attract and retain key executives and talent.
  • You want to incentivise your employees at a low cash cost.
  • The equity which is held by your management team is of no value and provides no incentive due to high levels of debt in the company.
  • You need to attract a key executive into your business and offer them an appealing package without incurring a significant cash outlay.

How can we help?

  • Working with you to structure an equity based incentive which is tax efficient for both the company and the individual.
  • Assisting you in the implementation of the new plan and the communication of the plan with management.
  • Assisting with numerical modelling of plan outcomes.
  • Advising on the tax implications and filing obligations related to the new plan.
  • Assisting with providing valuations of your equity incentives.
  • Advising you on the accounting implications of introducing equity based payments.

Contact us

Marie Flynn

Director, PwC Ireland (Republic of)

Tel: +353 1 792 6449

Mairead Harbron

Director, PwC Ireland (Republic of)

Tel: +353 87 203 1993

Sarah Kirwan

Senior Manager, PwC Ireland (Republic of)

Tel: +353 1 792 5557

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