Deferred share bonus plan

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What is a deferred share bonus plan?

A deferred share bonus plan is a type of long-term incentive plan (LTIP), typically put in place by quoted companies or those in certain sectors (such as the financial services sector). A deferred share bonus plan is a hybrid plan that combines awards payable or potentially payable under an annual bonus plan with an LTIP. With the emphasis moving away from short-term cash-based reward arrangements towards longer-term share-based plans, deferred share bonus plans are now widely used, especially for those companies with institutional shareholders.

Deferred share bonus plans are typically constituted by the following key elements:

  1. •

    they are structured as employees’ share schemes as defined in To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

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