Most family businesses tend to have remuneration packages that contain both salary and dividend payments. The main factor which influences this mix being the shareholding structure of the business. Pension contributions and other benefits in kind such as company cars or vans, health insurance etc. have a place in remuneration packages.
A remuneration package for an employee will tend to have a different focus as the purpose could be to attract, retain and incentivise key individuals at an acceptable cost to the business.
Salary sacrifice arrangements, although not as tax efficient as they once were are still an available option.
An employee share scheme is a way of sharing company ownership with your employees. You can reward one or more of your key people or all of your employees. Choosing the right type of scheme for your business is where things get a little more complicated.
Such schemes are used to retain and attract the best talent, improve productivity and performance through engagement in the business or simply relieve cash flow pressure.
