About Share Incentives
The world of share incentives and employee ownership is currently one of the hottest topics and a huge priority for the current government. The law is constantly changing and companies are regularly having to grapple with new legislation, new guidance and new ideas. In such a complex, ever-changing area, where the repercussions of getting it wrong can be unforgiving, companies need to understand the law and implement it correctly.
Corporate governance content
Reports on executive pay are regularly in the news. We include subtopics on corporate governance, remuneration issues for financial services firms and a comparison of UK Corporate Governance remuneration principles.
Disguised remuneration
Get updated documents and a Practice Note examining common disguised remuneration scenarios in share schemes. There’s nothing like this elsewhere.
Key Share Incentives developments
Keeping up-to-date on developments naturally important. We produce a weekly Share Incentives highlights report and email it straight to subscribers' inboxes. It's also posted on our news carousel.
Topics We Cover
Our Share Incentives Experts
Nicky Griffin
Stephen Woodhouse
David Pett
William Franklin
David Cohen
Latest Share Incentives News
This week's edition of Share Incentives weekly highlights includes a focus on executive pay, as peak AGM season comes to an end....
This week's edition of Share Incentives weekly highlights includes a joint report by WTW and Cevian Capital proposing reform of NED pay in the UK....
This week's edition of Share Incentives weekly highlights includes a focus on executive pay, as the AGM season continues....
This week's edition of Share Incentives weekly highlights includes a focus on executive pay, as the AGM season continues....
This week's edition of Share Incentives weekly highlights includes (1) HMRC’s Employment Related Securities Bulletins 67 and 68, (2) the FCA’s...
Latest Share Incentives Practice Notes
FORTHCOMING CHANGE: As announced at Autumn Budget 2024, the government has commissioned an independent review of the loan charge. The review,...
FORTHCOMING CHANGE: As announced at Autumn Budget 2024, the government commissioned an independent review of the loan charge. The review, announced on...
This Practice Note explains how UK tax legislation has evolved to address the use of disguised remuneration schemes, which have arisen as a result of...
STOP PRESS: Abolition of non-dom regime and remittance basis of taxation from 2025–26: Finance Act 2025 abolished the remittance basis of taxation and...
STOP PRESS: Abolition of non-dom regime and remittance basis of taxation from 2025–26: Finance Act 2025 abolished the remittance basis of taxation and...
Latest Share Incentives Precedents
This Precedent is a sample bonus schedule, to be inserted as a schedule to an employment contract or director’s service agreement, providing for...
This Agreement is made on [insert date of execution of the share option agreement]Parties1[insert name of Company whose shares are being granted under...
This agreement is between:Parties1ParticipantName: [insert name of participant]Home Address: [insert address of participant]Payroll Number: [insert...
That:1the [insert name of company] Share Incentive Plan (SIP), the trust deed and rules of which are summarised on pages [insert page number] to...
[TO BE PRINTED ON COMPANY HEADED NOTEPAPER][date]To [insert name of option holder]Right to acquire [insert class of shares] shares in the capital of...
Latest Share Incentives Q&As
Featured Share Incentives content
Malus and clawback
Malus and clawbackThe use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs...
What is a long-term incentive plan?
What is a long-term incentive plan?A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive...
Nil paid shares and partly paid shares—practical considerations
Nil paid shares and partly paid shares—practical considerationsWhat are nil paid shares and partly paid shares?When shares are issued, their...
Implementing share plans—ways to manage dilution of existing shareholders
Implementing share plans—ways to manage dilution of existing shareholdersWhat is share dilution?Share dilution happens when a company issues...
Introduction to enterprise management incentives (EMI) schemes
Introduction to enterprise management incentives (EMI) schemesIntroduction to EMI schemesThe EMI scheme is a highly flexible and tax-efficient scheme...
Corporation tax relief and employee share schemes
Corporation tax relief and employee share schemesCorporation tax deduction for costs incurred in setting up and operating employee share schemesCosts...
What is an employee benefit trust?
What is an employee benefit trust?The EBT as a trustAn employee benefit trust (EBT) is a form of trust. A trust refers to the legal relationship...
Phantom share awards and options
Phantom share awards and optionsWhat is a phantom award?Phantom awards, broadly speaking, can be split into two categories, phantom share awards and...
Growth shares—practical examples and comparisons with options
Growth shares—practical examples and comparisons with optionsWhat are growth shares?Growth shares, also known as value shares or hurdle shares, are a...
Value Creation Plans
Value Creation PlansWhat is a Value Creation Plan?The term ‘Value Creation Plan’ (VCP) normally refers to an employee incentive plan which is designed...
Cashless exercise of options
Cashless exercise of optionsWhat is a cashless exercise of options?The ‘cashless exercise’ of options or a 'cashless exercise facility' refers to the...
Employee ownership trusts
Employee ownership trustsWhat is an employee ownership trust?An employee ownership trust (EOT) is a particular type of employee benefit trust (EBT)...
Shares for non-executive directors—issues and considerations
Shares for non-executive directors—issues and considerationsMeaning of ‘non-executive director’The general definition of ‘director’ is not exhaustive....
Underwater share options
Underwater share optionsWhat is an underwater share option?'Underwater option' is the term used to describe a share option (granted under any share...
What is a SIP?
What is a SIP?This Practice Note provides an introduction to the HMRC tax-advantaged share incentive plan (SIP). It provides a summary of:•the types...
Pitfalls of setting up and operating an employee ownership trust
Pitfalls of setting up and operating an employee ownership trustWhat is an employee ownership trust?An employee ownership trust (EOT) is a particular...
Long-term incentive plans—income tax and NICs treatment
Long-term incentive plans—income tax and NICs treatmentTypes of LTIP awardsThe most common type of awards that can be made under a long-term incentive...
Notice of exercise of option
Notice of exercise of optionThe Company Secretary[insert date of letter][insert name of company who granted the option] (Company)[[insert address of...
Associated legal terms
Long term incentive plan (LTIP)
LTIP is an acronym for ‘long-term incentive plan’, which is a term that is commonly used among listed companies to describe an executive share incentive plan under which share-based awards are made to senior employees with a vesting period of at least three years.
Malus
Malus is an additional hurdle to the vesting of a share incentive award under which, if a material adverse event takes place, the company can reduce or extinguish the amount the awardholder may otherwise receive under that award. For further information.
Underwater option
Underwater share option is the term used to describe a share option (granted under any share option scheme) which has an exercise price per share greater than the current market value of a share.
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