Introductory guide to employee share schemes for private companies

Guide to employee share schemes for private companies

This guide explore why companies establish share schemes, what to think about when choosing a scheme, and recent tax changes.


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Following legislation introduced in 2014, the time is ripe for private companies in New Zealand to consider offering their employees an ownership stake in their business. Employee share schemes have been used for many years as a tool to reward, retain and attract talent by offering employees a stake in the companies they work for.

In New Zealand, employee share schemes have traditionally been the domain of large corporates, due to substantive compliance costs and the complexity of relevant securities law. However, legislation introduced in 2014 made share schemes easier to set up and implement, as well as more affordable for private companies.
In this introductory guide, we explore why companies establish share schemes, what to think about when choosing a scheme, and recent changes in the tax environment.

Employee share schemes can provide a platform to achieve various business goals. For them to be successful, you need to adopt the right kind and structure of scheme for your business. KPMG can help you with the following services:

  • Share scheme consultation
  • Structuring and implementation advice
  • Scheme valuation
  • Tax and accounting advice

© 2017 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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