Smaller companies with less than £15m assets are embracing employee shareholding, according to venture capital company 3i.
The 3i research showed 60 per cent of the smaller UK companies surveyed believe key staff should have share options. 59 per cent believe if the taxing of share options was more favourable, finding and keeping staff would be easier.
Chancellor Gordon Brown announced the scheme in November, to allow up to10 managers at smaller companies £100,000 in share options free from income tax and National Insurance.
The 3i chairman Brian Larcombe says: “We fully support wider share ownership where it is beneficial to the business in recruiting and retaining staff.”