Currently advising a successful profitable business who are going through an MBO as part of the long term owners succession plan.
There will be 4 shareholders of the business going forward, of which only one is an existing director and the other 3 are longer term members of the senior management team.
As the business will continue to be profitable post transaction, they are intending on immediately changing how the 3 longer term members are remunerated and their blend - i.e. moving from high salaries + quarterly bonuses to lower salaries and higher dividends.
Is this likely to be seen as reasonable and a fair consequence of the transaction/those individuals becoming shareholders, or will the notable drop in PAYE salary attract unwanted attention?