Last month, the QCA published its updated guidance for remuneration committees. The guidance is well-written and contains useful guidance for small and medium-sized companies, with helpful examples. It also indicates a tougher regulatory regime for AIM companies. The guidance starts by defining an effective remuneration committee in the following terms: “Effective Remuneration Committees ensure both…

January 25, 2021 Read more >

1. Introduction For so long as the UK was part of the European Union, some types of EU legislation such as Regulations and Decisions, were directly applicable as law in the UK pursuant to section 2(1) of the European Communities Act 1972. Other types of EU legislation such as Directives were implemented through domestic legislation.…

January 25, 2021 Read more >

The roller-coaster that was 2020:  The FTSE100 index entered 2020 at 7,542.40.  By the start of the first lockdown in March, it had dropped to 4,993.90, a fall of nearly 34%.  At the time of writing, the FTSE has risen to 6,572.18, up nearly 32% but still almost 13% below where it was at the…

December 22, 2020 Read more >

Introduction In July this year, the Chancellor, Rishi Sunak asked the Office of Tax Simplification (OTS) to carry out a review of Capital Gains Tax (CGT) to ‘identify opportunities relating to administrative and technical issues as well as areas where the present rules can distort behaviour or do not meet their policy intent.’ Publication of…

November 27, 2020 Read more >

Our April newsletter included an article on restricted share schemes, in particular making reference to research from the Purposeful Company (published at the end of 2019) suggesting that a growing body of investors are willing to consider alternative remuneration structures (to the standard LTIP), if the Remuneration Committee can argue the strategic benefits of adopting…

November 27, 2020 Read more >

Back to the basics – what are share plans? Share plans are means for companies to reward employees. Most often, these plans are established to improve motivation and boost productivity, by giving employees a stake in the company or share options. The more profitable the company gets, the more likely it is that employees will…

October 29, 2020 Read more >

Given the nature of our business, it will be unsurprising that we think share plans have an important role to play for companies weathering the current economic storms.  However, this view has been reaffirmed by the recent release by HMRC of research it commissioned into share plans.  The research was conducted independently and amongst its…

October 29, 2020 Read more >

In light of the deepening effect of COVID-19, here are some thoughts designed to help remuneration committees as they turn their minds to bonus awards for 2020 and performance metrics for both short- and long-term awards in 2021. Annual bonus awards for 2020 Performance measures and targets for 2020 will have been set at the…

October 29, 2020 Read more >

Share dilution happens when a company issues additional shares, reducing the proportion of a shareholder’s current ownership. The issue of new stock can be seen as a positive sign when, for example, it is used to raise money for expansion, to invest in competition or to introduce new products. On the other hand, existing shareholders…

September 28, 2020 Read more >

A new clause was added to the Finance Bill 2020 (which should shortly be section 107 of Finance Act 2020) in June, which provides a time-limited exception for EMI option holders who are unable to meet the necessary ‘working time’ requirements as a result of COVID-19. (See here for a discussion in our June Newsletter).…

July 30, 2020 Read more >

On 8 June 2020, HMRC published the Employment Related Securities Bulletin 35 which addresses certain issues concerning the impact of COVID -19 on employee share schemes. A brief summary of the bulletin is set out below. Click here for the full bulletin. Enterprise Management Incentives (EMIs) With regard to EMI, the bulletin states that HMRC…

June 29, 2020 Read more >

But is now a good time to adopt a new employee share plan? A recent report, published by The Social Market Foundation (“the SMF”), in February 2020 was entitled “Strengthening employee share ownership in the UK”.  This report was both supported and funded by the Investment Association. The SMF is an independent British political public…

May 28, 2020 Read more >