William Cookson

This Practice Note introduces the concept of parallel options and discusses why they are used in both listed/public companies and private companies alike. The Practice Note also discusses the specific use of parallel options in conjunction with enterprise management incentives (EMI) schemes and company share option plans (CSOPs) and examines their accountancy treatment and the practical implications of implementing such arrangements. This Practice Note is written in conjunction with William Cookson of St. James’s Place Wealth Management.

This Practice Note examines the main issues and considerations to be taken into account when an individual shareholder agrees to settle employee share options in a company. These include the process and documentation required, company law and regulatory issues, tax implications for the company, the option holder and the individual shareholder, and the accounting and reporting considerations.