Cash bonus scheme for private company
Cash bonus scheme for private company

The following Share Incentives guidance note provides comprehensive and up to date legal information covering:

  • Cash bonus scheme for private company
  • The Schedule

[TO BE TYPED ON COMPANY HEADED PAPER]

[insert date]

[insert name of employee]

[insert address]

Dear [insert name]

The [insert name of company] Bonus Scheme

I am delighted to notify you that you have been selected to participate in the [insert name of company] Bonus Scheme (the ‘Scheme’). Under the Scheme, you will be eligible to receive a bonus payment which is linked to the profits of [insert name of company] (the ‘Company’) for the 12-month period ending [insert date] (the ‘Bonus Year’). The circumstances in which any bonus may be paid to you are set out in the Schedule to this letter (the ‘Schedule’).

After the end of the Bonus Year, the Board of the Company will determine that a proportion of the Company’s profits for the Bonus Year will be allocated in paying bonuses to Scheme participants who have remained employees of the group (and are not on notice of cessation of employment). Each of these participants will then be notified of the value of their resulting bonus, which will be calculated as a percentage of their salary, with the same percentage applying to all participants.

You should note that this letter merely summarises the terms of the Scheme, and that the terms of any payment and the circumstances in which it may be made to