We frequently advise on tax efficient ways of involving employees in companies.
We have found that the current environment of low company valuations together with generous discounts from Revenue for valuing shares in private companies (which may be short lived) give plenty of opportunities to involve employees in a company at a low tax cost.
In one client case, the client was able to give shares in the company to employees at a low price prior to a take over. The employees were able to receive cash on the take over of the company at low tax cost.
For other clients, there was no sale on the horizon but they have used the low valuations to incentivise employees by providing them with shares in the company at a low tax cost, but with a protection mechanism that passes the shares back to the company if the employee leaves within a fixed number of years.