What is the difference between a discretionary and an all-employee share plan?

A discretionary plan lets the company choose who participates and on what terms — EMI, CSOP, Growth Shares, DSPP and NTA options all work this way. Awards can be made on a differential basis, with different performance targets or vesting conditions for different individuals or teams.

An all-employee plan must be offered to every eligible employee. The Share Incentive Plan and Save As You Earn both fall into this category. There is still flexibility in how much each person receives — free shares under a SIP must be offered on “similar terms”, but can be varied by objective criteria such as salary, length of service or hours worked.  There is no reason why an EMI or CSOP couldn’t be offered to all employees assuming they meet the employment criteria.