Management Incentive Plans

Your challenges, our solutions

As part of increasingly demanded tax optimisation strategies, management incentive plans have to be meticulously designed, so that managers and directors are remunerated in the most advantageous way possible.

There are various ways to remunerate management, which can drive to different behaviours from managers, different tax impacts, and, ultimately, different performances of the companies and their stakeholders.

PwC has experienced and highly specialised professionals, capable of presenting the best management incentive plan for your company.

Today, it is key to design the right incentive scheme, that provides a full alignment of goals among the company’s stakeholders.

But what are actually the tax efficiencies that may be achieved with the right Management Incentive Plan?

Replacement
of employment income by other types of income (e.g., capital gains)

Deferral
of taxation

Reduction
of the Social Security burden

and more...

Find possibilities…

There are distinct incentives that can be used as a way to remunerate management not only on commercial/industrial companies but also on private equity firms.

In order to identify the alternatives that best suit your goals and expectations, we analyse the tax impacts of each option, to make sure that you will be well informed about the advantages and limitations of each alternative.

Without a properly motivated management team, business performance is inhibited and investors are unlikely to meet their objectives.

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Maria Torres

Maria Torres

Tax Partner – Deals Tax, PwC Portugal

Tel: +351 225 433 135

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