_db33a8.png)
Equity & Compensation
How to structure equity, share options, and compensation when you can't compete on salary. Discuss EMI schemes (including the April 2026 expansion), vesting schedules, option pool sizing, salary benchmarking by stage, and how to explain an equity offer so candidates actually understand it. If you've set up an EMI scheme, negotiated equity as an early employee, or figured out how to pay yourself as a founder — share what you learned. EMI options, CSOP, vesting, salary benchmarks, equity splits, BADR tax rates.
1 topic in this forum
-
EMI share options are the most tax-efficient way to give your employees equity in a UK startup. No income tax or National Insurance on grant or exercise, capital gains tax at 18% instead of up to 45% income tax, and a Corporation Tax deduction for the company. The April 2026 rule changes mean more businesses qualify than ever before. I didn't set up an EMI scheme until our third hire. That was a mistake. Our first two employees negotiated equity informally, on napkin-level terms, with no scheme, no HMRC valuation, no vesting schedule, and no documentation beyond an email saying "we'll sort you out 2% each." When I eventually spoke to a lawyer about formalising it, the cos…
-
- 2 replies
- 470 views
-
