A Matter of Trust
July 2009
Many private companies find that employee trusts are very suitable structures for sustaining employee ownership. This EOA report explains why. It argues that the tax treatment of employee trusts should be significantly improved, and recommends that Share Incentive Plan trusts should be permitted to retain shares for the benefit of employees indefinitely, rather than be required to distribute shares to individual employees, which can create complexity and cause instability in the ownership structure.
Author: Nigel Mason, EOA
Published: July 2009