Company Share Option Plan (CSOP)
The Company Share Option Plan (“CSOP”) is a tax-advantaged share option plan that can help reward selected participants for their long-term contribution to their business.
Download free CSOP Fact Sheet
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 objectives have been met.
Each selected participant can hold CSOP options over shares with a value of up to £30,000 (this will be increased to £60,000 from April 2023) based on the market value at the date of the grant.
Companies which fail to meet the qualifying criteria for the more favourable Enterprise Management Incentive (“EMI”) scheme may wish to consider implementing a Company Share Option Plan as part of their benefits package.
Employee Share Schemes
Benefits of a Company Share Option Plan
- Motivate participants to work beyond short-term goals
- Reward participants on a tax-advantaged basis
- 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
- Minimise risk for participants
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:
1. Strategic review
The design will flow from your objectives, so the more precise you are the better. What is your business plan, and what you need from your employees to execute this plan successfully? Do you want to focus people on an exit? Do you want to reward all employees as a team? Do you have just one key recruit in mind? We will ask you lots of questions to tease out your objectives.
2. Plan design
3. Shareholder resolutions
Once the design and modelling are complete, we will work through your company structure and identify what changes need to be approved by shareholders. We will then prepare resolutions to be passed and work with you to obtain approval from shareholders.
4. Articles of association
5. Share valuations
6. Employee communications
7. Share Plan administration
8. Ongoing support
Employee Share Scheme Aftercare
Once an employee share scheme is setup, it is vital that it is administered effectively to ensure that:
- your share plans remain compliant
- all relevant documents are filed online with HMRC
the intended tax benefits are achieved - employees are kept aware of their awards and the benefits
- your share plans remain relevant
What our clients say
Susan Ralphs
Executive Director, The Ethical Property Company
We are happy with RM2, they have provided the appropriate system enabling us to reward staff with company shares in the most tax efficient way. RM2 staff are always prompt and helpful in our dealings with them.
Next steps
We have successfully designed, implemented and administered over 1,150 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 a Company Share Option Plan can help your business, why not call a member of our team directly on 020 8949 5522, request a callback using the button located at the top of the page, download our fact sheet or send an email to enquiries@rm2.co.uk.
