The Growth Plan 2022 announced by the Chancellor of the Exchequer includes some changes to the employee share schemes, a summary of which is set out below. Company Share Option Plan (CSOP) Perhaps the most significant change announced in the Growth Plan 2022 affects CSOPs. In particular, the individual limit is being increased from £30,000…

October 12, 2022 Read more >

On the 12th July, the ESOP Centre hosted a members’ webclave titled “Are Broad-Based Share Plans Still Fit For Purpose?”. The guest speakers covered a number of topics and issues affecting broad-based share plans today. An employee share scheme is a powerful tool for employee retention and alignment of stakeholder interests. As employment practices are…

July 19, 2022 Read more >

Recently, the FT reported on investor concerns about Government proposals to review current rules on paying NEDs in shares or share options. The Government wants to see if they impose any unnecessary restrictions on NEDs becoming fully invested in the future success of the companies of which they are directors. This raises questions about the…

July 19, 2022 Read more >

On 16th June 2022, HMRC published the Employment Related Securities Bulletin 43 (Bulletin). The main content of the Bulletin relates to the bonus rate mechanism for Save As You Earn (SAYE) Scheme. In the Bulletin HMRC acknowledged that the current mechanism for calculating the bonus and interest rates (which incidentally has remained at 0% since…

June 29, 2022 Read more >

On the 23rd June, The ESOP Centre hosted a webinar titled ‘Share Schemes and the Impact of Inflation’. The comprehensive presentation covered a number of topics including the dangers of stagflation, the cost-of-living crisis and how employee share schemes may be used to combat this issue, with a particular focus on the economics of the situation.…

June 29, 2022 Read more >

Many readers will be aware that last month, the IA issued its response to two issues arising from Russian sanctions and the economic impact of Russia’s invasion of Ukraine, namely: LTI award sizes in light of the recent fall in share prices; and Whether a six-month delay in setting LTI targets would be appropriate, owing…

April 19, 2022 Read more >

In the recent case of Lord and others v Maven Wealth Group Limited [2021] EWHC 2544, the High Court has held that the provisions in the articles of association for the determination of ‘fair value’ of shares take precedence over the provisions in the shareholders’ agreement, even if ‘fair value’ is defined in the articles…

November 4, 2021 Read more >

The two principal all-employee share schemes available in the UK are Sharesave and Share Incentive Plans (SIPs). Participants in Sharesave schemes (sometimes called savings-related share options) are granted share options over the number of shares which can be acquired, for a price per share up to 20 per cent lower than the market price per…

October 7, 2021 Read more >

In April 2020, the Investment Association (IA) published their guidance on shareholders expectations during the COVID-19 pandemic in relation to executive remuneration in UK listed companies. This guidance was updated in November 2020. In view of the impact that the on-going COVID-19 pandemic restrictions and the lockdown is having on certain listed company’s remuneration committee’s…

March 28, 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 >

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 >

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 >