SIP: Share Incentive Plan
The SIP is a tax-advantaged share plan that must be offered to all eligible employees of a company, on broadly the same terms. SIPs are an effective way to motivate an entire workforce to surpass corporate objectives, and create a genuine feeling of ownership within an organisation.
SIP: About the Share Incentive Plan
Under a SIP, shares can be awarded to employees through one (or a combination) of the following methods; Free Shares, Partnership Shares and Matching Shares.
Once awarded, the shares are then held on behalf of the participants within a SIP Trust. After a 5 year period, the shares can be sold and no Income Tax or National Insurance Contributions will be due.
SIP: Benefits of the Share Incentive Plan
The SIP is one of the most flexible and tax-advantaged share schemes currently available in the UK.
Since its introduction, the RM2 team has helped numerous companies to:
- Motivate participants to work beyond short-term goals
- Reward participants on a tax-advantaged basis
- Promote long-term retention of employees
- Encourage growth by aligning the goals of everyone within the organisation
- Attract top candidates to companies
- Minimal risk for participants
For more detailed information on the benefits and limitations of an SIP, please download our fact sheet, or call 020 8949 5522 to speak with one of the team.
SIP: 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 Share Incentive Plan can help your business, why not call a member of our team directly on 020 8949 5522, request a free consultation using the button above, download our fact sheet or email a member of our team.