RM2 > Quoted Companies

Quoted Companies

If you work in a UK quoted company, you probably operate some type of employee share scheme. Most do and there is significant evidence that such schemes are associated with enhanced shareholder value.

Good corporate governance suggest that equity based incentives are kept constantly under review by the Remuneration Committee. Are they still correctly targeted? Do they comply with latest Investor Principles? Do they pay out appropriately on termination? Do they still maximise tax advantages for the company, shareholders and employees? Do they still deliver value for money? Have you done the option expensing?

Can we cut your administration costs and suggest ways in which your schemes could be developed and improved?

Benefits of a Share Plan for Quoted Companies

Implementing a share plan can:

  • Help your company attract the best possible candidates ahead of your competition
  • Provide employees with a long-term incentive and encourage them and not to settle once they have reached their short-term KPIs
  • Replace cash bonuses and defer costs
  • Create a feeling of ownership in the business leading to increased loyalty
  • Potentially offer a tax effective method of rewarding the hard work of employees
  • Align the interests of the employees with the shareholders and investors

Share scheme administration

Administration involves options and awards registers, annual tax returns, paper work for new awards or when someone exercises or leaves, Board minutes, market announcements, liaison with brokers, and general compliance. 

In recent years the complexity of administering employee share schemes has risen and the penalties for getting it wrong have increased (PAYE penalties, HMRC late return fines, problems with due diligence or banking covenants). In our experience, most quoted companies could save costs and worry by outsourcing this work to experiences share scheme administrators. RM2 currently administers more than 200 share schemes and employee benefit trusts for corporate clients.

We take care of every aspect including leavers and joiners, Board minutes and resolutions and the compilation of statutory returns. RM2's custom made software can administer every kind of share scheme on a single platform and we can offer web portals to participants.

Good employee communication is vital to the success of any employee share incentive both at the start and during the term of the awards. RM2 has delivered hundreds of employee presentations and so is well placed to advise and should you wish to find out more, please visit our share plan administration page.

Share scheme audit

Quoted companies face a variety of regulatory challenges including compliance with PAYE and NIC regulations, the Corporate Governance Codes, Accounting Standards, FCA regulations, requirements of the 2006 Companies Act and Listing or AIM Rule. The RM2 Partnership can undertake an audit of your employee schemes and advise on the nature and implications of any non-compliance – click here for further details.

Different share plans will confer different benefits. To find out which share plan would best suit your business strateg contact the RM2 office directly on 020 8949 5522.