Key employee share schemes considerations on a corporate transaction
Key employee share schemes considerations on a corporate transaction

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • Key employee share schemes considerations on a corporate transaction
  • Understanding the impact of a corporate transaction on the company's share incentives
  • Steps which will normally need to be taken
  • Issues which often arise on a transaction
  • Takeover by share purchase agreement
  • Takeover by general offer
  • Takeover by scheme of arrangement
  • Initial Public Offering
  • Group reorganisations
  • Sale of subsidiary or business out of the corporate group
  • More...

Key employee share schemes considerations on a corporate transaction

Understanding the impact of a corporate transaction on the company's share incentives

If a company is subject to a corporate transaction, this will often have an impact on any share incentive awards that exist over its shares. It is important to determine what this impact will be as early as possible in the planning stages of the transaction as the share incentives aspects can sometimes be critical to the proposed structure, mechanics and/or timing of the transaction, and can otherwise result in a need to revise the transaction further down the line specifically in order to take account of them. This can particularly be the case where:

  1. a large proportion of the share capital is subject to share awards

  2. where key individuals or a significant proportion of the workforce hold such awards, or

  3. where an employee benefit trust (EBT) is in existence

This Practice Note looks at the steps which will typically need to be taken on any transaction when dealing with the share incentives aspects of it (see Steps which will normally need to be taken below). It also identifies key issues that will often arise on a transaction (see: Issues which often arise on a transaction below). This Practice Note then looks at different types of transactions individually in order to identify particular high-level issues or

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