Transcript Employee Share Schemes - CISI

Employee Share Schemes
Philip Fisher
Employee Benefits Partner
www.cvdfk.com
Recruitment and Retention
 Motivate key people
 Retain key people
 Incentivise all staff
 Tax breaks
 Pay-off on float or sale
 Start again
HMRC Approved Schemes
 Enterprise Management Incentives (EMI)
 Share Incentive Plans (SIPs)
 Company Share Option Plans (CSOPs)
 Sharesave (SAYE)
Unapproved Schemes
 Share options
 Direct shareholdings
 Restricted shares
 Partly paid shares
 Phantom share options
EMI Schemes
 Selective
 £100,000 per individual/£3m per employer
 Qualifying trades/£30m Gross assets
 Freedom
 No tax on grant
 No tax on exercise – maybe
 CGT on sale
 Taper relief from grant
SIPs
 All employee
 Shares
• Free shares - £3,000
• Partnership shares - £1,500
• Matching shares - £3,000
• Dividend shares - £1,500
 In trust for five years
CSOPs
 Selective
 £30,000 per person
 Minimum exercise price
 3 years minimum period
 Taper from exercise
Sharesave
 Linked to SAYE scheme
 Monthly savings
 3/5/7 years
 Linked to share option
Takeovers
 Read the rules
 Exercise?
 Rollover?
 Buy out options?
Floats
 Insider information
 Closed periods
 Option exercise
 Stock Exchange requirements
International Considerations
 Mobile Staff
 Differing tax regimes
 Hidden pitfalls
 Tax planning
ABI Guidelines
 Only “Guidelines”
 Public companies should comply
 Timing of grants
 Restrictive
• Length and price of options
• Performance conditions
• Total shares
Philip Fisher
Employee Share Schemes
[email protected]
www.cvdfk.com
www.cvdfk.com