In Budget 2018 I announced the introduction of the new Key Employee Engagement Programme (KEEP) with the objective of supporting SMEs in Ireland in competing with larger enterprises to recruit and retain key employees. Share options can provide key employees with a financial incentive linked to the success of the company and may improve the attractiveness of an SME employment offer.
The measure is intentionally focussed on SME companies, but the issue to which the Deputy refers, whereby the current legislation may limit the growth potential of a company while KEEP options are on issue, has been brought to my attention and my officials are reviewing the matter.
I indicated at Committee Stage of the Finance Bill that officials were continuing to engage with small business representatives to ensure that the KEEP legislation was operable in practice and that it would be effective in meeting its policy objective. I also indicated that I may bring forward further amendments at Report Stage of the Finance Bill.
The operation of the KEEP scheme will be subject to compliance with European Union State Aid rules.