SAYE—requirements for options
SAYE—requirements for options

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

  • SAYE—requirements for options
  • Overall requirements for SAYE schemes and options
  • The law governing the requirements for SAYE options
  • What must the exercise price be?
  • Determining market value
  • Impact of variation of share capital
  • Details of restrictions on shares
  • Restrictions on transferring an SAYE option
  • Circumstances in which an SAYE option must be capable of exercise
  • Exercise following the bonus date
  • More...

SAYE—requirements for options

This note covers the following topics:

  1. overall requirements for save as you earn (SAYE) schemes and options

  2. the law governing the requirements for SAYE options

  3. what must the exercise price be?

    1. determining market value, and

    2. impact of variation of share capital

  4. details of restrictions on shares

  5. restrictions on transferring an SAYE option

  6. circumstances in which an SAYE option must be capable of exercise

    1. exercise following the bonus date

    2. in which circumstances must the option be exercisable before the bonus date?

    3. timing of exercise

  7. additional circumstances in which an SAYE option may be capable of exercise

    1. leavers in other circumstances

    2. company ceasing to have control and certain business transfers

    3. employment in associated company at bonus date

    4. corporate events, and

    5. option holder becoming a US taxpayer, and

  8. when does an SAYE option lapse?

Overall requirements for SAYE schemes and options

An SAYE option must be granted under the terms of an SAYE scheme which satisfies the following requirements of the SAYE legislation:

  1. general requirements which the SAYE scheme must meet

  2. requirements regarding the persons to whom options can be granted

  3. requirements as to the types of shares which may be subject to an SAYE scheme

  4. requirements for a linked savings contract in relation to the option

  5. requirements as to the terms of the share options, and

  6. requirements regarding the terms on which SAYE options may be

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