Mauritius: : Incentivising employees with SIPs

• Localización: International financial law review, ISSN-e 0262-6969, Vol. 33, Nº. 4, 2014, págs. 53-54
• Idioma: inglés
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• Resumen

  • An employee share incentive plan (SIP) enables employees to acquire and hold shares in their employing company. They are generally implemented by employer companies in order to incentivise and retain employees (participants), and for such participants to receive indirect benefits from the appreciation in the growth of the company. Therefore, whilst such schemes are beneficial to the employee, they indirectly benefit the employer company. Employees with a vested interest in the success and performance of a company are more motivated to work, as their investment is based upon the performance of the company. SIPs can potentially lead to tax benefits for the employer company and the employee.