CSOP: Company Share Option Plan
The CSOP is a tax-advantaged share option plan that can help reward selected participants for their long-term contribution to their business.
CSOP: About the Company Share Option Plan
As a share option plan, the CSOP offers selected participants the opportunity to purchase shares at a specified time and price defined by an employer.
Individual performance and retention conditions can be built in, helping to ensure rewards are only distributed when key corporate objective have been met.
Each selected participant can hold CSOP options over shares with a value of up to £30,000 based on the market value at the date of the grant.
Companies which fail to meet the qualifying criteria and are therefore unable to grant the more favourable Enterprise Management Incentive (EMI) scheme may wish to consider implementing a CSOP as part of their benefits package.
CSOP: Benefits of a Company Share Option Plan
- Motivate participants to work beyond short-term goals
- Reward participants on a tax-advantaged basis (Entrepreneurs’ Relief usually available)
- Protect current shareholders from immediate dilution and loss of control
- Promote long-term retention of key employees
- Encourage growth by linking awards to performance conditions
- Provide a framework to include new participants, if required
- Attract top candidates to companies
- Minimal risk for participants
For more detailed information on the benefits and limitations of a Company Share Option Plan, please download our fact sheet, or call 020 8949 5522 to speak with one of the team.
CSOP: How we can help
At RM2, we believe in taking a consultative approach to building share plans and finding out precisely what our clients are looking to achieve. This approach helps us to deliver a professional and effective service, helping clients meet their goals and plan for the future. Our highly experienced team are well positioned to guide your company through every stage of the share scheme process, including:
- Strategic review
- Plan design
- Shareholder resolutions
- Articles of association
- Share valuations
- Employee communications
- Plan administration
- Option expensing
- Ongoing support
We have successfully designed, implemented and administered over 700 share plans across a range of sectors, so you can rest assured your plan will be in the best possible hands!
If you would like to find out more about how an Company Share Option Plan can help your business, why not call a member of our team directly on 0208 949 5522, request a callback using the button above, or download our fact sheet!