We recently published an outline checklist for putting in place an employee share plan. Step one on that checklist is producing a blueprint for the design of the employee share plan. This is important not just to get the design of the employee share plan right...
One of the issues raised in connection with the Carillion story in the last couple of days is the bonuses paid to directors which, by all accounts, can’t be clawed back despite the disaster that’s befallen the company. It seems unlikely that clawing back directors’ bonuses...
Traditionally, as the year ends, RM2 takes a look at the highlights of the year in share schemes. This year, we thought we’d break with tradition and focus on the most important highlight – our clients. We are lucky enough to work with a huge variety of...
This part of the series looks at dilution, or rather protecting specific groups from dilution. You can set up an employee share scheme to protect specific groups from dilution, but I'll explain below why keeping things simple (and not offering dilution protection to employee shareholders)...
Worry about what happens to an employee's options or shares when they leave can often lead to unnecessary complexity. This is the second in a series of posts looking at some of the common barriers to a simple employee share scheme. Why is it hard to keep...
I love simple share scheme designs – they’re easier to manage, easier to explain to participants and more reliably produce the intended outcome. Why is it hard to keep it simple? Keeping it simple isn’t easy – the government already throws enough complexity at businesses in the...
Flexible share plans Many private companies are keen to implement a flexible employee share scheme and will frequently choose a discretionary scheme such as Enterprise Management Incentives (EMI) or Company Share Option Plan (CSOP). These schemes allow the directors to choose the individuals who will benefit under...
There have been bigger issues in the world this year than share schemes. Nonetheless, it’s been an exciting year for us at RM2. Here’s a look at the best (and worst) bits: January 2016 Back to work for our admin team. We file around 60 trust...
When designing and implementing an employee share scheme, the importance of a company secretary (or the person performing the duties of a company secretary) is vital and should not be underestimated. A Company Secretary and their role The role of a Company Secretary can incorporate all areas...
The need for guiding principles It’s easy to get lost in the complexity of regulations and tax rules around employee share schemes. There are no clearly, readily understandable principles or policy objectives defined in the regulations themselves. Instead, the regulations and tax rules are the result...
Did you put in place a great share scheme this year? Did you take an existing share scheme and revive and enliven it? Did your share scheme sparkle and delight? Were your communications innovative, imaginative, pro-active and - crucially - did they...
A Conservative government has the following key policies that may affect your plans on share schemes and remuneration generally: Increasing the tax-free personal allowance to £12,500 and the higher rate threshold to £50,000; Increasing the charge on “non-doms” and tackling abuses of the of the...
If you, or one of your clients, operates an employee share scheme, it MUST be registered on HMRC’s new online Employment Related Securities portal by 6th July this year. This applies to ANY scheme, whether you have just implemented it, or whether it has been operating...
If any of your clients have UK taxpayer employees receiving share/stock options, restricted share units or other employee share benefits, the plan or agreement must be registered with HM Revenue & Customs (HMRC) online preferably before 6th April 2015, and then an online (not paper)...
Ensuring the implementation of any employee share scheme is an essential component in its success. However, taking care to ensure the administration is permitted the same level of detail is also of paramount importance. Errors in scheme administration can expose an organisation to significant financial risk,...
