How to use options to attract and retain top talent

Startups often can’t compete with big-company salaries, which makes hiring (and keeping) the best people feel almost impossible. Without the right incentives, founders risk losing top talent to better-funded competitors.

That’s where share option schemes come in. In this webinar, SeedLegals’ Aaron Duke and Ijaz Aflah break down how EMI and unapproved option schemes can help founders attract, motivate and retain the people who’ll grow the business. From setting up the right vesting structure to making the most of EMI tax advantages, they explain how offering equity can level the playing field for early-stage companies.

In this session, they share practical insights from helping hundreds of startups set up their option schemes. Expect clear answers on time vs milestone vesting, EMI eligibility, and what to consider when setting up your option pool.

Key takeaways

Why Options Matter

• Startups can’t always match market salaries. Options can make up that gap for employees who want to join you on your mission.
• Giving equity creates a sense of ownership that motivates and retains your team.
• The right scheme reduces turnover and keeps your best people focused on growth.

EMI vs. Unapproved Options

• EMI options: tax-efficient, designed for UK-based employees and directors at smaller companies.
• Unapproved options: flexible, for advisors, consultants and international hires, but with fewer tax perks. Learn more about unapproved options here
• Many companies use both: EMI for the core team, unapproved for everyone else.

 How to Structure Your Scheme

• A well-designed scheme boosts productivity, loyalty and company value.
• Time-based vesting (usually 4 years with a 1-year cliff) is the standard for retention.
• Milestone vesting ties equity to performance goals, while time-based vesting rewards loyalty. Accelerated vesting aligns your team with exit goals.
• Plan ahead for valuations to keep option grants tax-efficient and fair for your team.

Talk to our team

Got questions about share option schemes? Want to set one up for your company? We’d love to help. Book a free call below.