Q&As

Can a company operate an employee share scheme which allows those who voluntarily resign the same award as those who just retire?

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Published on LexisPSL on 15/08/2018

The following Share Incentives Q&A provides comprehensive and up to date legal information covering:

  • Can a company operate an employee share scheme which allows those who voluntarily resign the same award as those who just retire?

In summary, a company is able to structure its share scheme so that it allows those who voluntarily resign the same equity bonus as those who retire, however, depending on the type of employee share scheme the company is adopting, the awards may not be able to benefit from the same tax-advantaged treatment.

There are both tax-advantaged and non tax-advantaged share schemes. As a general rule, tax-advantaged schemes are less flexible and the terms of the scheme that need to be imposed in order to be able to benefit from tax relief are often dictated to by legislation. Depending on the type of tax-advantaged share scheme a company is thinking of adopting, it may or may not be possible to allow those who voluntarily resign, the same equity bonus as those who

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