327. Share Incentive Plans.

Share Incentive Plans ('SIPs') are a saving scheme providing benefits to employees in the form of shares in the employing company1. SIPs typically contain four elements2:

  1.  

    (1)     'free shares', which are shares appropriated to employees without payment subject to a maximum value of £3,600 per employee per annum3;

  2.  

    (2)     'partnership shares', which are shares acquired on behalf of employees out of sums deducted from their salary4;

  3.  

    (3)     'matching shares', which are shares appropriated to employees without payment in proportion to the partnership shares acquired by them5; and

  4.  

    (4)     'dividend shares', where dividends accrued on the other types of shares