Long-term incentive plans and deferred share bonus plans

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EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth

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Practice notes

What is an employee benefit trust?

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

Produced in partnership with Jeremy Glover of Fenwick Elliott 26th Sep

Practice notes

Introduction to employee share ownership schemes

This Practice Note provides an introduction to:•why companies have employee ownership models•the main types of share ownership models, and•issues to...

26th Sep

Practice notes

How CSOPs work and key features

This Practice Note covers the following topics in high level detail:•what are CSOPs?•the law governing CSOP options•the eligibility...

26th Sep

Practice notes

EMI and disqualifying events

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

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Practice notes

EMI—what makes an employee eligible?

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

26th Sep

Practice notes

Employee ownership trusts

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

Produced in partnership with Stephen Woodhouse 26th Sep

Practice notes

Drafting leaver provisions in share plans

Leaver provisions and different types of schemeWhen drafting a set of share plan rules or an option or award agreement, a company will wish to make...

26th Sep

Practice notes

Unapproved share options—tax treatment

Specific income tax rules (in sections 471–487 of the Income Tax (Earnings and Pensions) Act 2003 (Part 7, Chapter 5) (ITEPA 2003)) apply to...

26th Sep

Practice notes

Unapproved share options

What are unapproved share options?Share options are rights to acquire shares which can be exercised when certain conditions have been met (such as the...

26th Sep

Practice notes

Growth shares (value shares)

What are growth shares?Growth shares, also known as value shares or hurdle shares, are a special class of shares that have restricted rights. These...

26th Sep

Practice notes

Malus and clawback

The use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs following the...

26th Sep

Practice notes

Employee share schemes—dealing with leavers

What are leavers?Departing individuals are known generically as ‘leavers’ but the reason behind the departure will usually result in different...

Produced in partnership with Jenny Wheater of Duane Morris LLP 26th Sep

In-house

Practice notes

Setting up an employee benefit trust

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

Produced in partnership with Jeremy Glover of Fenwick Elliott 26th Sep

Practice notes

Introduction to enterprise management incentives (EMI) schemes

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

26th Sep

Practice notes

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 share plans under which a company makes...

26th Sep

Practice notes

EMI—requirements for options

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

2nd Sep

Most recent Long-term incentive plans and deferred share bonus plans content

Practice notes

Deferred share bonus plans—listing rules and shareholder approval

This practice note details the obligations placed on quoted companies in respect of the establishment, implementation and operation of a deferred...

25th Sep

Practice notes

An introduction to deferred share bonus plans

Deferred share bonus: key elementsDeferred share bonus plans are typically constituted by the following key elements:•they are structured as...

25th Sep

Practice notes

Structure of an LTIP

Types of awardsDifferent types of awards can be granted under a long-term incentive plan (LTIP) and more than one may be offered under the same...

25th Sep

Practice notes

Long-term incentive plans—benefits and issues

A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive share plans under which a company makes...

25th Sep

Practice notes

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 share plans under which a company makes...

26th Sep

Precedents

LTIP—participant agreement

This PARTICIPANT AGREEMENT should be signed and returned within [30] DAYS of the grant of your award, OTHERWISE THE AWARD WILL LAPSE. THEREFORE,...

26th Sep

Precedents

LTIP — notice of exercise of option

The Company Secretary[insert date][insert name of company that granted the option] (Company)[[insert address of company that granted the option]]Form...

26th Sep

Practice notes

Long-term incentive plans—income tax and NICs treatment

Types of LTIP awardsThe most common type of awards that can be made under a long-term incentive plan (LTIP) include:•conditional share awards (which...

26th Sep

Practice notes

Long-term incentive plans—capital gains tax consequences

FORTHCOMING CHANGE: On 14 July 2020, the Office of Tax Simplification announced that it is conducting a review of capital gains tax (CGT), seeking...

26th Sep

Practice notes

Comparison of UK and US share incentive arrangements

Companies in both the US and the UK have a long history of involving employees in equity ownership, and both countries have provided tax breaks and...

Produced in partnership with Jonathan Fletcher Rogers of Addleshaw Goddard 26th Sep

Precedents

Deed of renouncement of option

I, [insert full name of option holder], refer to the option over [insert number and class of shares under option] shares of £[insert nominal value of...

26th Sep

Precedents

Notice of exercise of option

The Company Secretary[insert date of letter][insert name of company who granted the option] (Company)[[insert address of company that granted the...

26th Sep

Precedents

Umbrella LTIP rules

PART ONE—GENERAL PROVISIONS1Definitions and interpretations1.1DefinitionsAnnual Bonus•means in respect of a particular Financial Year the annual bonus...

26th Sep

Precedents

LTIP—restricted award certificate

[insert name of company who granted the award pursuant to the long term incentive plan (LTIP)] (Company)[insert name of LTIP] (Plan)NameNumber of...

26th Sep

Precedents

LTIP—option certificate

[insert name of company who granted the option pursuant to the long term incentive plan (LTIP)] (Company)[insert name of LTIP] (Plan)NameNumber of...

26th Sep

Precedents

LTIP—deed of grant

This Deed is entered into on [insert date on which the deed is executed] by [insert name of the company granting the Awards] whose registered office...

26th Sep

Precedents