Employee Benefit IPO Trusts (EBT)
Posted: Wed Feb 19, 2025 9:24 am
Another important aspect of trust arrangements in IPO planning is the establishment of a trust for the benefit of employees. Although employee benefit or incentive structures can be designed in a variety of ways, many of them are provided through discretionary trusts.
Where the company establishing the structure and settling the assets into the Trust is the settlor, the beneficiaries of the trust may comprise current and future employees of the settlor company.
The rationale for establishing an EBT as part of the IPO process is to hold shares in the jordan mobile database newly listed entity and for those shares to subsequently be used to provide efficient incentives for staff.
Purpose and Benefits in relation to Staff
The benefits of establishing an EBT include:
– hold founding IPO stake for the benefit of the management;
– short, medium and long term buy-in and incentivisation of key staff;
– opportunity to offer stakeholder incentivisation to a wide staff base;
– potential protection from the demands of creditors, in the event of a liquidation.
Where the company establishing the structure and settling the assets into the Trust is the settlor, the beneficiaries of the trust may comprise current and future employees of the settlor company.
The rationale for establishing an EBT as part of the IPO process is to hold shares in the jordan mobile database newly listed entity and for those shares to subsequently be used to provide efficient incentives for staff.
Purpose and Benefits in relation to Staff
The benefits of establishing an EBT include:
– hold founding IPO stake for the benefit of the management;
– short, medium and long term buy-in and incentivisation of key staff;
– opportunity to offer stakeholder incentivisation to a wide staff base;
– potential protection from the demands of creditors, in the event of a liquidation.