The Retention Employee Share Ownership Plan

For Employee Retention, Sustainability & Employee Ownership

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Grow faster with an ESOP designed to motivate your employees.

Retain & attract employees by tying their financial success with the business.

Hassle-free, sit back and relax. Let us take care of the entire process for you.

The Retention ESOP by ESOP Pal

Who is it for?

Tailored for Australian SMEs looking to reduce key person risk, grow and motivate employees!

+5 Employees & Profitable

$2,000,000+ Revenue

Growth, Retention & Motivation

Businesses with 5+ employees demonstrating robust profitability.

Enterprises generating over $2,000,000 in revenue, aiming to align their employees' success with the business's success.

SMEs striving for growth and looking to motivate and retain key employees over the long term.

That's me! I'm interested!

What are the benefits?

The Retention ESOP by ESOP Pal has many benefits but here are 3 major ones!

Benefit 1 Image
Growth & Motivation

  • Growth: Employees must hit businesses targets in order to acquire shares

  • Motivation: The Retention ESOP aligns your employees' financial success with that of the business.
Benefit 2 Image
Employee Attraction & Retention

  • Ownership Incentives: Employees earn shares that appreciate with the company, incentivizing long-term commitment.

  • Golden Handcuffs: Employees who leave early have their employee equity significantly reduced.
Benefit 3 Image
Employee Owners

  • Empowerment through Education: The Retention ESOP is a journey, not just a transaction, enhancing skills for business continuity.

  • Focus on Passion: Free yourself from operational demands to concentrate on what you love about your business.
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How Does The Retention ESOP Work?

The Retention ESOP by ESOP Pal allows you to reduce key personel risk, reward, retain & motivate your best employees

The Retention ESOP employs Rights with additional Restrictions to enhance employee retention and reward. Instead of traditional cash bonuses, this innovative approach leverages equity, aligning rewards with the company's share price.

Employees are granted rights that vest over three years, contingent upon meeting specific performance criteria.

Illustration of equity allocation through rights in Retention ESOP.

Upon satisfying the vesting conditions, these rights transform into restricted shares. These shares are subject to a 10-year restriction period to ensure long-term commitment.

To safeguard and manage these assets effectively, the restricted shares are transferred to a trust.

Conversion process of rights to restricted shares under Retention ESOP.

Should an employee depart within the restriction period, a portion of their equity is reclaimed by the company. This mechanism serves as a powerful incentive for employees to remain with the company.

Visual representation of equity recall in case of early employee departure.

The Retention ESOP extends the impact of what would have been a fleeting cash bonus into a 13-year journey of financial engagement and retention. Employees with equity stakes are financially intertwined with the company's success, making their contributions directly influential to their wealth.

Comparison of long-term impact of Retention ESOP versus cash bonuses.

This overview simplifies the workings of the Retention ESOP by ESOP Pal. For a more detailed explanation, click the button below.

Request more information on the Retention ESOP by ESOP Pal

Got Questions?

Explore our FAQs on the Pal ESOP below.

The Retention ESOP by ESOP Pal is crafted for cost efficiency, ensuring you don't face the steep fees common in the industry.

Forget about the $60,000 price tag. And don't even think about $30,000.

Our Retention ESOP comes at a transparent, fixed fee of $24,999 + GST. Experience unparalleled value without the premium cost!

The Retention ESOP package is comprehensive, designed for easy implementation and to enlighten your team. Here's what you get:

  1. An in-depth valuation necessary for offering equity to employees, valued at $12,999.
  2. Comprehensive drafting of the share plan, trust deed rules, and the offer letter, valued at $11,599.
  3. KPI analysis for vesting conditions to ensure you target the right metrics to movitvate your employees the right way, valued at $15,999
  4. An educational session on equity and the advantages of employee ownership, valued at $8,999.
  5. An online offer detailing the equity offered, including a plan handbook for employee reference at any time, valued at $6,399.
  6. Various cheat sheets for owners, accountants, and other stakeholders to demystify complex aspects, valued at $7,999.
  7. An employee financial understanding survey, valued at $2,999.
  8. A session on financial literacy, enabling employees to understand financial statements and their impact, valued at $8,999.
  9. An option to purchase ongoing ESOP administration at a discounted rate. This includes tax reporting, vesting tracking, managing future employee offers, and employee sessions, plus access to an equity professional for both you and your employees.

The total estimated value of these services is approximately $75,992!

All available for a fixed fee of $24,999 + GST.

While the Retention ESOP is priced at $24,999 + GST, significantly below its estimated value of $75,992, you might wonder how we manage this. The answer lies in our commitment to long-term partnerships rather than immediate profits.

Our primary focus isn't on the initial setup fee; instead, we derive our success from the ongoing management of ESOP plans. This approach allows us to invest in our relationship with your business, ensuring we're there to support you and your employees over the long haul.

We see the implementation of Employee Share Ownership Plans (ESOPs) as the beginning of a journey. Through ongoing administrative services, we're able to offer continued support, whether it's helping employees understand their equity, providing assistance with accounting, managing ESS tax reporting, or offering refresher sessions on financial literacy. We're also equipped to create custom surveys to gauge employee perceptions of the business and the ESOP.

This long-term partnership model allows us to make the initial setup of ESOPs accessible while ensuring we can offer valuable, ongoing support to you and your employees for as long as you have an ESOP.

Ideal for Australian SMEs looking to reduce risk, the Retention ESOP by ESOP Pal fits:

  • Australian SMEs
  • Revenue above $2,000,000
  • For those who want to promote growth of their business
  • For those who want to attract, retain & motivate employees
  • For those who want to reduce risk and increse business value

Absolutely! The Retention ESOP is versatile:

Designed for retention but it's equally effective for targeting other areas in the business in need of improvment.

It's a powerful tool to reward dedication, promote growth, and enhance retention and sustainability within your company.

We offer tailored solutions for various company stages and goals. While custom plans are available, consider our specialized plans for a more immediate fit:

More Questions? Schedule a call with us!