About Share Incentives
The world of share incentives and employee ownership is currently one of the hottest topics and a huge priority for the current government. The law is constantly changing and companies are regularly having to grapple with new legislation, new guidance and new ideas. In such a complex, ever-changing area, where the repercussions of getting it wrong can be unforgiving, companies need to understand the law and implement it correctly.
Corporate governance content
Reports on executive pay are regularly in the news. We include subtopics on corporate governance, remuneration issues for financial services firms and a comparison of UK Corporate Governance remuneration principles.
Disguised remuneration
Get updated documents and a Practice Note examining common disguised remuneration scenarios in share schemes. There’s nothing like this elsewhere.
Key Share Incentives developments
Keeping up-to-date on developments naturally important. We produce a weekly Share Incentives highlights report and email it straight to subscribers' inboxes. It's also posted on our news carousel.
Topics We Cover
Our Share Incentives Experts
Nicky Griffin
Stephen Woodhouse
David Pett
William Franklin
David Cohen
Latest Share Incentives News
This week's edition of Share Incentives weekly highlights includes (1) in relation to employee benefit trusts, the cases of JTC Employer Solutions...
This week's edition of Share Incentives weekly highlights includes (1) an update on the progress of Finance Bill 2025 and the National Insurance...
This week's edition of Share Incentives weekly highlights includes (1) the CIOT’s response to the employee ownership trust provisions of the draft...
This week's edition of Share Incentives weekly highlights includes (1) Glass Lewis’ publication of its 2025 proxy voting guidelines and (2) HM...
This week's edition of Share Incentives weekly highlights includes (1) publication of Finance Bill 2024–25, (2) a change in the bonus rates for SAYE...
Latest Share Incentives Practice Notes
Brexit timelineOn 23 June 2016, the UK held a referendum on its membership of the EU, with a majority voting in favour of the UK leaving the EU. On 29...
Offering shares to workers engaged via an employer of recordIntroductionThis Practice Note discusses the key UK tax and legal considerations that...
US: Foreign Account Tax Compliance Act (FATCA)—summaryThe Hiring Incentives to Restore Employment Act (the HIRE Act) includes provisions that give the...
PAYE implications of securities optionsFORTHCOMING CHANGE: At Autumn Budget 2024, the Labour government confirmed that it will proceed with the former...
How employment income is taxed—concept of general earningsFORTHCOMING CHANGE: At Autumn Budget 2024, the Labour government confirmed that it will...
Latest Share Incentives Precedents
Note to company in relation to granting EMI options and maintaining the EMI qualifying status of the options[Insert name of company granting EMI...
Board minutes—approving the satisfaction of EMI option exercises[insert name of company adopting the EMI scheme] (Company)—[insert Company...
Questionnaire to select the right type of share schemeSelection of the right share scheme is essential in order to ensure that the arrangement meets...
Joint share ownership plan (JSOP) agreementThis Deed is made on the [insert] day of [insert month] 20 [insert year]Parties1[insert name] of [address]...
Covering letter to EMI option holders (options granted pursuant to EMI rules and agreement)[insert date of letter][insert name of employee][insert...
Latest Share Incentives Q&As
Featured Share Incentives content
How do I contact HMRC with a share schemes related query?
How do I contact HMRC with a share schemes related query?HMRC consists of specialist departments dealing with specific areas of employment related...
Malus and clawback
Malus and clawbackThe use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs...
Tax implications of salary sacrifice
Tax implications of salary sacrificeCoronavirus (COVID-19): As part of a series of measures put in place to stop the spread of coronavirus (COVID-19),...
Corporation tax relief and employee share schemes
Corporation tax relief and employee share schemesCorporation tax deduction for costs incurred in setting up and operating employee share schemesCosts...
Underwater share options
Underwater share optionsWhat is an underwater share option?'Underwater option' is the term used to describe a share option (granted under any share...
What happens to restricted stock units or stock options that have vested during an employee's notice period (assuming the employee is still employed at the vesting date)?
Comparison of UK and US share incentive arrangements
Comparison of UK and US share incentive arrangementsCompanies in both the US and the UK have a long history of involving employees in equity...
Nil paid shares and partly paid shares—practical considerations
Nil paid shares and partly paid shares—practical considerationsWhat are nil paid shares and partly paid shares?When shares are issued, their...
Growth shares—practical examples and comparisons with options
Growth shares—practical examples and comparisons with optionsWhat are growth shares?Growth shares, also known as value shares or hurdle shares, are a...
What is a long-term incentive plan?
What is a long-term incentive plan?A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive...
Unapproved share options—tax treatment
Unapproved share options—tax treatmentSpecific income tax rules (in sections 471–487 of the Income Tax (Earnings and Pensions) Act 2003 (Part 7,...
EMI—HMRC annual return
EMI—HMRC annual returnThis Practice Note details the following:•the EMI annual return form•the pre-registration and timing of completion of the annual...
Employee share schemes—dealing with leavers
Employee share schemes—dealing with leaversWhat are leavers?Departing individuals are known generically as ‘leavers’ but the reason behind the...
An introduction to deferred share bonus plans
An introduction to deferred share bonus plansDeferred share bonus: key elementsDeferred share bonus plans are typically constituted by the following...
Implementing share plans—ways to manage dilution of existing shareholders
Implementing share plans—ways to manage dilution of existing shareholdersWhat is share dilution?Share dilution happens when a company issues...
Notice of exercise of option
Notice of exercise of optionThe Company Secretary[insert date of letter][insert name of company who granted the option] (Company)[[insert address of...
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409A
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409ARelevance of non-qualified deferred...
What is a SIP?
What is a SIP?This Practice Note provides an introduction to the HMRC tax-advantaged share incentive plan (SIP). It provides a summary of:•the types...
Associated legal terms
Employee ownership trust (EOT)
EOT is an acronym for ‘employee ownership trust’, which is a particular type of statutory EBT that was introduced under Schedule 37 to the Finance Act 2014. Where a trust meets the various legislative requirements in order to qualify as an EOT, certain statutory tax reliefs will be available.
Institutional investor
An investor such as a pension fund, insurance company or charity.
Share option
A share option is an agreement between the holder of shares and a third party. An option gives one party the right (but not an obligation) to purchase shares at a specified price at a specified point of time (or on the occurrence of a specified event).
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