Employees

For obvious reasons, employees focus on salaries and bonuses. Those employees who are aware of share plans might think that they are too risky or only want shares if their company is doing well.

Shares can be a very valuable asset - they certainly are to company owners, but if an employee doesn't value them, owners aren't going to give them away. Once employees understand how a share plan can work and the potential rewards, the position can change dramatically. Both parties can benefit from share plans with owners only releasing shares if the company and the employee perform.

Adviser: You're working hard?
Employee: Of course.

Adviser: The company's doing well?
Employee: It's tough out there, but we're hitting our targets.

Adviser: Do you have a stake in it?
Employee: No.

Adviser: Then you could be missing out.

Some key points for employees:

• Option plans have no risk until you choose to buy the shares, and there is no obligation on you to do so
  
• Share in the success you help create - if the company is sold, without a stake you could get nothing
  
• Special tax-effective plan available for smaller companies
  
• Download reasons to discuss with your boss - what's in it for owners and what's in it for employees