What ongoing administration does a share plan need?

Once a plan is running it needs continuous upkeep to preserve its tax status and to ensure that all details are fully up to date. That means keeping a register of participants with award dates, vesting conditions, exercise prices, lapse dates and leaver reasons; tracking every grant, exercise, lapse and modification; and retaining supporting documentation such as board resolutions, option agreements and valuation reports.

You also need to keep on top of legislative changes, and file the annual return on time. Companies that let this slip usually discover the problem at the worst possible moment — during due diligence on a sale.