About Share Incentives
The world of share incentives and employee ownership is currently one of the hottest topics and a huge priority for the current government. The law is constantly changing and companies are regularly having to grapple with new legislation, new guidance and new ideas. In such a complex, ever-changing area, where the repercussions of getting it wrong can be unforgiving, companies need to understand the law and implement it correctly.
Corporate governance content
Reports on executive pay are regularly in the news. We include subtopics on corporate governance, remuneration issues for financial services firms and a comparison of UK Corporate Governance remuneration principles.
Disguised remuneration
Get updated documents and a Practice Note examining common disguised remuneration scenarios in share schemes. There鈥檚 nothing like this elsewhere.
Key Share Incentives developments
Keeping up-to-date on developments naturally important. We produce a weekly Share Incentives highlights report and email it straight to subscribers' inboxes. It's also posted on our news carousel.
Topics We Cover
Latest Share Incentives News
This week's edition of Share Incentives weekly highlights includes a focus on executive pay in the banking sector as the AGM season continues....
This week's edition of Share Incentives weekly highlights includes a focus on executive pay as the AGM season continues....
This week's edition of Share Incentives weekly highlights includes (1) the decision in Cooke v Revenue and Customs Commissioners regarding entitlement...
This week's edition of Share Incentives weekly highlights includes: (1) Tax Administration and Maintenance Day 2024 and (2) a focus on executive pay...
Tax analysis: As announced at Spring Budget 2024, the government announced a package of four technical tax policy proposals as part of Tax...
Latest Share Incentives Practice Notes
Securities acquired for less than market valueThis Practice Note deals with the specific rules applying to employment-related securities acquired for...
Brexit and IP completion day鈥攊mplications for employment lawyers [Archived]ARCHIVED: This archived Practice Note outlines the key general implications...
The Chartered Governance Institute guidance on terms of reference for the remuneration committeeThis guidance, dated May 2022, was produced by the...
Internationally mobile employees and employment-related securities (pre-6 April 2015) [Archived]ARCHIVED: This Practice Note has been archived and is...
How employment income is taxed鈥攕hares or securitiesWhere an employee or director acquires, holds or disposes of shares or securities in connection...
Latest Share Incentives Precedents
Data protection privacy notice (employment)[Insert name of organisation]Data protection privacy notice (employment)This notice explains what personal...
Letter鈥攆rom employer enclosing data protection privacy notice (employment)[Insert name and address of client]Private and confidentialDear [insert...
Share incentive plan due diligence questionsIntroductionThis questionnaire is designed to enable a purchaser, the purchaser鈥檚 solicitors and other...
Company share option plan (CSOP) due diligence questionsIntroductionThis legal due diligence questionnaire relates to the proposed purchase by [insert...
General share schemes due diligence questionsIntroductionThis legal due diligence questionnaire relates to the proposed purchase by [insert buyer...
Latest Share Incentives Q&As
Featured Share Incentives content
How do I contact HMRC with a share schemes related query?
How do I contact HMRC with a share schemes related query?HMRC consists of specialist departments dealing with specific areas of employment related...
Malus and clawback
Malus and clawbackThe use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs...
Tax implications of salary sacrifice
Tax implications of salary sacrificeCoronavirus (COVID-19): As part of a series of measures put in place to stop the spread of coronavirus (COVID-19),...
Corporation tax relief and employee share schemes
Corporation tax relief and employee share schemesCorporation tax deduction for costs incurred in setting up and operating employee share schemesCosts...
Underwater share options
Underwater share optionsWhat is an underwater share option?'Underwater option' is the term used to describe a share option (granted under any share...
What happens to restricted stock units or stock options that have vested during an employee's notice period (assuming the employee is still employed at the vesting date)?
Comparison of UK and US share incentive arrangements
Comparison of UK and US share incentive arrangementsCompanies in both the US and the UK have a long history of involving employees in equity...
Nil paid shares and partly paid shares鈥攑ractical considerations
Nil paid shares and partly paid shares鈥攑ractical considerationsWhat are nil paid shares and partly paid shares?When shares are issued, their...
Growth shares鈥攑ractical examples and comparisons with options
Growth shares鈥攑ractical examples and comparisons with optionsWhat are growth shares?Growth shares, also known as value shares or hurdle shares, are a...
What is a long-term incentive plan?
What is a long-term incentive plan?A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive...
Unapproved share options鈥攖ax treatment
Unapproved share options鈥攖ax treatmentSpecific income tax rules (in sections 471鈥487 of the Income Tax (Earnings and Pensions) Act 2003 (Part 7,...
EMI鈥擧MRC annual return
EMI鈥擧MRC annual returnThis Practice Note details the following:鈥he EMI annual return form鈥he pre-registration and timing of completion of the annual...
Employee share schemes鈥攄ealing with leavers
Employee share schemes鈥攄ealing with leaversWhat are leavers?Departing individuals are known generically as 鈥榣eavers鈥 but the reason behind the...
An introduction to deferred share bonus plans
An introduction to deferred share bonus plansDeferred share bonus: key elementsDeferred share bonus plans are typically constituted by the following...
Implementing share plans鈥攚ays to manage dilution of existing shareholders
Implementing share plans鈥攚ays to manage dilution of existing shareholdersWhat is share dilution?Share dilution happens when a company issues...
Notice of exercise of option
Notice of exercise of optionThe Company Secretary[insert date of letter][insert name of company who granted the option] (Company)[[insert address of...
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409A
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409ARelevance of non-qualified deferred...
What is a SIP?
What is a SIP?This Practice Note provides an introduction to the HMRC tax-advantaged share incentive plan (SIP). It provides a summary of:鈥he types...
Associated legal terms
Discounted Share Option
A share option which is granted with an exercise/option/strike price less than the actual market value of the share (the market value of a share taking into account any restrictions and risks of forfeiture) under option as measured at the date of grant of the option.
Employee Benefit Trust
EBT is an acronym for ‘employee benefit trust’, which is a type of discretionary trust which is set up primarily for the benefit of employees and former employees of a company (or parent company) and those of its subsidiaries and certain dependents.
Joint share ownership plan (JSOP)
Joint share ownership plans (JSOPs) also sometimes referred to as a 鈥榡oint ownership agreement' (JOA). This is a type of employee share incentive plan under which the employee participant owns shares jointly with a third party, which is typically the trustee of an employee benefit trust (EBT).
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