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 the AGM season continues....
This week's edition of Share Incentives weekly highlights includes (1) Royal Assent of the National Insurance Contributions (Employer Pensions...
This week's edition of Share Incentives weekly highlights includes (1) HMRC’s Employment Related Securities Bulletin 65, (2) minutes from the Share...
This week's edition of Share Incentives weekly highlights includes new Q&As in relation to EMI options....
This week's edition of Share Incentives weekly highlights includes: (1) a reminder of the increased statutory thresholds and period of exercise which...
Latest Share Incentives Practice Notes
What are optional remuneration arrangements?The rules surrounding Optional Remuneration Arrangements (‘OpRAs’) were introduced by the Finance Act 2017...
Salary sacrifice (also known as ‘salary exchange’) is an arrangement in which an employee agrees to contractually reduce their entitlement to cash...
FORTHCOMING CHANGE: This Practice Note reflects the current legislative position, however, note that certain elements may be impacted by the Digital...
What is salary sacrifice?Salary sacrifice (also known as ‘salary exchange’) is an arrangement in which an employee agrees to contractually reduce...
On 31 January 2020, the UK ceased to be a member of the EU and EEA. From 1 January 2024, retained EU law that remains in force in UK law is known as...
Latest Share Incentives Precedents
[insert date of letter]To: [insert name of employee]From: [insert name of person in charge of salary sacrifice arrangements and their position within...
[For use only where the employee is foregoing salary for the following benefits that retain Tax and/or NICs advantages permitted pursuant to the...
[insert date of letter]This document summarises certain changes to the contractual terms and conditions of employment between [insert name of...
Wealthy TeamHM Revenue & CustomsBX9 1BN[insert date of letter][insert company PAYE reference]Dear [insert organisation name]Non-Statutory Clearance of...
[For use only where the employee is foregoing salary for the following benefits that retain Tax and/or NIC advantages permitted pursuant to the...
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
Employee Tax Advantaged Share Scheme User Manual (ETTASUM)
The Employee Tax Advantaged Share Scheme User Manual (ETTASUM) is HMRC’s guidance relating to tax advantaged share schemes.
EOT
Extensions of Time
Sarbanes-Oxley
The Sarbanes-Oxley Act of 2002, a corporate governance regime in the United States, which set new or enhanced standards for public company boards, management and public accounting firms (including overseas firms with a primary or secondary listing in the US).
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