In partnership with MSW Ventures, we facilitated an insightful session on Thursday 7 November, delving into the intricate subject of employee incentive schemes. The event brought together a diverse group of professionals including lawyers, venture capitalists, private equity specialists, corporate representatives, and entrepreneurs. The focus was on crafting effective incentive structures that are instrumental in attracting and scaling talent.
Session 1: Employee Incentive Arrangements: Rationale, structures and global market trends
Our first session, delivered by Partner Stephen Diosi (Mishcon de Reya), Krissandi Lee (Director, Executive Compensation & Board Advisory, Willis Towers Watson) and Jon Cartmell (Director, Executive Compensation Services, CSC Global) examined:
- The rationale for introducing employee share plans and how they can be used to drive a successful business
- A comparison between the common employee incentive structures used across APAC and globally
- Building blocks of effective Executive Compensation frameworks
- The purpose and importance of using an employee benefit trust
- Innovative Incentive practice: Value Creation Incentive Plan
- Incentive framework practices in APAC and globally
Session 2: Tax issues to consider in implementing employee incentive arrangements
Vincent Sim (Managing Associate) and Theodore Tan (Associate) shared their insight on key tax issues to consider when implementing employee incentive arrangements. Their session delved into:
- What are the Singapore tax considerations in implementing an employee incentive arrangement?
- What are the tax implications of an employee incentive arrangement for both companies and employees in Singapore?
- What are the US tax implications of an employee incentive arrangement for both founders and employees who are US persons, and what steps can they take to manage their US tax exposure?
Session 3: Panel discussion - The impact of incentive arrangements on startups and growth companies: Perspectives from venture capitalists and founders
Our panel discussion explored the role that incentive arrangements play in contributing to the growth and success of startups and high-growth companies. The panellists shared their practical insights and experience on implementing incentive arrangements successfully.
The panel session was moderated by Partner Si Wei Chua (Mishcon de Reya). Si Wei was joined by panellists Jeffrey Seah (General Partner, MSW Ventures), Nathanael Lim (Co-Founder and Chief Strategy Officer, Avium), Qin En Looi (Partner, Saison Capital), and Sam Lee (Co-Founder and Partner, Paloe).