Minimise business risk by retaining key employees with a long term incentive plan – an important step to becoming financially secure.
A long term incentive plan (LTIP) can be a great way of rewarding and retaining key team members whilst avoiding the need to share equity in the business.
Many businesses are faced with the worry of losing a key team member. Such a loss is costly. These is not only the cost of retaining a new employee but also the unmeasurable loss of years of business experience, specific knowledge and ability to pass that knowledge to future employees. In these situations many businesses look to ‘lock in’ the key person by offering them a share in the business. This is not necessarily the wrong thing to do, but transferring ownership and effectively going into business with another person should only happen for the right reasons. The long term implication of having another owner needs to be worked through and understand before making such a decision. A long term incentive plan is another option to reward key team members and encourage loyalty in the business.
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Chris has the formal qualifications of Chartered Accountant but attributes much of his knowledge and experience to growing up on a busy farm and being part of building the Mulcahy & Co business. Chris has a passion for the agricultural industry and helping farmers take control of their farm businesses through sound financial management and deliver on Mulcahy & Co Agri Solutions core purpose – to help committed farmers achieve and maintain financial security.