Vestd Introduces New Framework to Make Employee Share Schemes Fairer

Vestd, the share scheme & equity management platform for UK SMEs, has today announced its proprietary new framework, Agile Partnerships™, which ensures that those who are rewarded shares have contributed to the company’s success.

Under Agile Partnerships™ equity rewards will be based on agreed performance milestones, to ensure that everybody knows what they’re expected to contribute to the company. Equity is then released in a way that is proportionate to what people actually contribute, vs what was promised.

The idea is to ensure that people only retain equity if they’ve contributed to the success of the business, and the amount received is proportionate to what has actually been delivered.

Ifty Nasir, Co-Founder and CEO of Vestd, explained: “Employee share schemes – if managed correctly and the right one is chosen – deliver huge benefits to the business in terms of improving productivity and recruiting and retaining skilled people. This makes them very attractive to start-ups and small companies who have limited budgets.”

“However, there is a risk that founding partners and early hires will walk away with significant equity, having not delivered business benefits to the company. Agile Partnerships™ are a watertight solution to this problem.”

Agile Partnerships™ are very flexible and are tailored for each business to incentivise future growth. They are designed to reward recipients fairly, and in a proportionate way. Terms and milestones are determined with the employees. The employer sets the conditions and the equity allocation on a per person basis. Equity rewards are then delivery based.

This new agile framework has a number of different use cases, including bringing co-founders and early hires into the business, incentivising NEDs and advisors, transforming management structures, and transitioning senior people out of a company.

Agile Partnerships™ is a trademarked scheme from Vestd and costs from just £100 per month.