January 2026 - Arachas Employee Benefits

Family businesses are built on trust, legacy and long-term relationships. But what happens when the unexpected occurs – such as the death of a shareholder? Without a clear succession plan, both the business and the family may face serious financial and operational challenges.

That’s why it is essential for shareholders to think ahead. Planning for succession is not just about protecting the company and ensuring business continuity, it is also about safeguarding family harmony. The consequences can be significant for both surviving shareholders and the next of kin. Here are some of the most common issues each may face – and why having a financial safety net, such as shareholder protection insurance, can make all the difference:

Surviving Shareholders – Potential Issues

Loss of Control – If the deceased owned more than 50% of the company, the remaining shareholders may find themselves working with a new controlling shareholder – possibly the deceased’s spouse or children. This can lead to disagreements about how the business should be run, especially if the new shareholder has no prior experience in the business.
Refusal to Sell – The ideal outcome for surviving shareholders may be to buy back the deceased’s shareholding from their next of kin. But what happens if the next of kin refuses to sell? This could result in deadlock and strain on business operations.
Lack of Liquid Capital – Even if the next of kin is willing to sell, the surviving shareholders may lack sufficient liquid capital to purchase the shares. Borrowing the necessary funds could result in a long-term financial burden, and this financial strain can affect growth and stability.
Shares Passed to an Outside Party – If the next of kin wants to sell and the surviving shareholders are unable to buy, the shares may be sold to a third party – possibly a competitor or someone with no experience in the business. This could disrupt the company’s long-term strategy and introduce competitive risk.

Next of Kin – Potential Issues

An Illiquid Asset – If the shares are not sold, the next of kin may be left holding a paper asset that produces little or no income. This situation could be even more serious if the shares trigger an immediate inheritance tax liability, creating financial stress during an already difficult time.
No Ready Market for Shares – There may be no obvious buyer for the shares, leaving the next of kin in a difficult financial position. This lack of liquidity can delay estate settlement and family financial planning.

A Real-Life Scenario

Imagine a family-owned artisan bakery in Ireland. Two brothers run the business together. One owns 60% of the shares, and the other owns 40%. Everything works well – until the unexpected happens. The majority shareholder passes away suddenly.

What happens next? His shares go to his next of kin, who has no experience running a bakery. Overnight, the surviving brother loses control of the business. He wants to buy back the shares to keep the bakery in the family, but there’s a problem: he doesn’t have the cash. Taking out a large loan would put the business under financial strain. If he can’t buy the shares, the next of kin might sell them to an outsider – maybe even a competitor. This could change the direction of the business completely.

Now imagine the same situation with shareholder protection in place. The bakery has a corporate shareholder protection policy. The company owns life insurance policies on its shareholders. When one shareholder dies, the policy pays out a lump sum to the company. That money is used to buy back the shares from the deceased’s estate. The result? The surviving brother keeps control of the bakery, the family receives fair value for their shares, and the business continues without disruption.

For smaller businesses or those with only two shareholders, personal shareholder protection may be more suitable. In that case, each shareholder takes out a policy on themselves, and the payout is used by the other shareholder to purchase the shares.

Why Planning Matters and the Role of Expert Advice

Without proper planning, the death of a shareholder can create uncertainty for both the business and the family. It can lead to loss of control, financial strain, and even the sale of shares to outsiders. For the next of kin, it can mean holding an illiquid asset that is difficult to sell and may trigger tax liabilities.

The right shareholder protection ensures funds are available to buy back shares quickly and fairly. This helps the business remain in the hands of the surviving shareholders while giving the family financial security during a difficult time.

Getting expert advice is essential. A qualified financial advisor with experience in business protection can support the process, working hand in hand with your own professional legal and tax advisors and will liaise with the insurers’ underwriters throughout. A well-structured plan aims to:

Identify the most suitable shareholder protection strategy, whether corporate or personal.
Assess liquidity needs for surviving shareholders and next of kin.
Structure buy-back arrangements to minimise tax exposure, which can vary significantly depending on how policies are structured and how payouts are treated.
Ensure the plan is legally sound, fair, and aligned with both business and family interests.

Working with specialists ensures that all financial, operational and tax considerations are accounted for, helping to avoid costly mistakes and unintended outcomes. By putting a clear, practical, and tax-efficient plan in place, businesses can secure continuity, maintain control, and protect family relationships.

If you want to make sure your business is prepared and your succession plan is robust, contact us today to discuss your options and put a plan in place that works for your business and your family.

E: [email protected] Ph: 083 8618048

Frank Glennon (Life & Pensions) Limited, trading as “Arachas Employee Benefits”, “Arachas Financial Planning”, “Glennon”, “Glennon Employee Benefits” and “Glennon Financial Planning”, is regulated by the Central Bank of Ireland.

Employee wellbeing has moved from a “nice to have” to a business-critical priority in Ireland. Organisations are recognising that wellbeing impacts engagement, retention and productivity. According to Ibec’s Workplace Wellness research, 69% of employees say workplace wellness has become more important in recent years and 68% cite hybrid or flexible work as essential to their wellbeing. Many will even trade pay for flexibility, with 35% saying they would leave a well-paid role for better hybrid options. This signals that flexibility is no longer just a perk, it is a core expectation.

The Business Case: Why Wellbeing Matters

Wellbeing is not just about doing the right thing for employees. It is about performance and risk management. CIPD’s HR Practices in Ireland 2025 report shows that 51% of organisations now have wellbeing on the senior leadership agenda, and 36% report it has become more challenging to manage. Mental health was identified as being one of the leading causes of absence in 25% of organisations. Acute medical conditions were only fractionally higher at 26%. SD Worx research highlights that almost one in four Irish employees has taken mental health leave, compared to an EU average of 18%. These figures underline the cost of inaction and the need for proactive strategies.

What Employers Are Offering

Irish employers are responding with a mix of benefits. CIPD Ireland data and industry research show:

Group Pensions: Around half of employers offer an occupational pension scheme. These schemes are almost universal among larger organisations. With the introduction of pension auto-enrolment this month, more SMEs are considering setting up company pension schemes as a more flexible and in many areas, attractive option, to attract and retain employees.
Group Life assurance and income protection: Frequently included in packages for medium and large employers.
Private medical insurance: Offered by many larger organisations and overall 46% of the Irish population has private health insurance. Many employees also take advantage of company-negotiated discounts and schemes offered by health insurers.
Wellbeing initiatives: CIPD reports that 56% of organisations provide online wellbeing initiatives and 54% are increasing investment in mental health support.

These numbers show that while financial benefits remain the foundation, health and wellbeing supports are becoming standard practice.

Mental Health: From Awareness to Action

Employers increasingly recognise their responsibility. UCC’s Healthy Workplace Ireland report found that 76% of employers agree they are responsible for employee mental health (81% agree in larger firms), but only 20% have a dedicated budget to support employees mental health and just 32% have a wellbeing lead at board level. This gap between intention and investment is significant. Without resources, even the best intentions cannot deliver impact. Practical steps such as employee assistance programmes, counselling services and mental health champions can make a real difference.

Culture matters too. CIPD research shows that half of organisations encourage employees to disconnect after hours, which helps tackle burnout and supports healthier work-life balance. SD Worx also reports that 50% of employees describe their work as mentally demanding or stressful, and 29% say their job negatively affects their mental health. These findings show that mental health challenges are not just personal—they are organisational issues.

Financial Wellbeing: The Overlooked Factor

Financial stress often goes unnoticed, yet it significantly affects performance and mental health. Research from SD Worx shows that 44% of employees in Ireland experience financial stress, and Ibec reports that 41% of HR leaders identify financial wellbeing as a top challenge for the year ahead.

Employers can make a real difference by offering financial education, budgeting tools and pension guidance. These supports help employees feel more secure and reduce stress that can spill over into work.

The Regulatory Imperative: CSRD in Ireland

Wellbeing is no longer just a competitive advantage – it’s becoming a compliance requirement. Ireland has transposed the EU Corporate Sustainability Reporting Directive (CSRD) into law, introducing phased obligations for companies to report on workforce wellbeing metrics as part of ESG disclosures.

Large companies, public-interest entities and non-EU organisations with a significant EU presence will need to provide detailed data on areas such as health, safety and mental wellbeing. While CSRD may not explicitly mandate a wellbeing strategy, the depth of reporting required will, in practice, push companies to implement structured wellbeing initiatives.

When reviewing your employee benefits, it’s worth considering these requirements and whether your company is in scope. Aligning your benefits with these expectations now will help you stay compliant and strengthen your sustainability approach.

Practical Steps for Irish Employers

1. Audit and Baseline: Review your current benefits, utilisation and absenteeism data.

2. Invest in Mental Health: Provide Employee Assistance Programmes (EAPs), counselling and manager training.

3. Embed Flexibility: Make hybrid work part of your wellbeing approach.

4. Support Financial Wellbeing: Offer budgeting tools and pension advice.

5. Enhance Health Benefits: Consider private medical insurance and wellbeing programmes to support physical and mental health.

The Bottom Line

Wellbeing is now a business priority in Ireland. Employees expect it, leaders are focusing on it and regulators may require it. An Employee Benefits Strategy that puts health, mental health, flexibility and financial resilience at its core along with pensions and protection benefits will help organisations attract and retain talent and build a more engaged and resilient workforce.

If you want to explore how to strengthen your benefits strategy with wellbeing initiatives, pensions and protection, talk to our Employee Benefits team today. Call +353(0)1 7075880 or email [email protected]