Employee Share Schemes
Employee Share Schemes, Eighth Edition provides a comprehensive examination of the taxation, legal and compliance issues concerning the acquisition of shares by employees in their employer company, whether public or private.
With a detailed review of the key issues and techniques involved in establishing and operating share schemes, this practical guide includes worked examples to illustrate complex calculations and a useful series of precedents to assist with implementing and understanding the operation of each scheme. Clear advice on the most common share schemes helps to ensure that plan rules are fully compliant with legislation.
This revised edition includes all legislative changes through to the Finance Act 2019 and 2020 budget resolutions. It also includes:
- The revised UK Corporate Governance Code for listed companies, and the related guidance published by the FRC in its Guide on Board Effectiveness, covering, in particular, provisions relating to the design of share plans for executives (3.2, 3.38), including holding periods, clawback (6.36, 7.70) and guidance on performance targets (7.86)
- The revised Guidelines issued by the Investment Association on remuneration and employee share schemes (3.4)
- The EU Prospectus Regulation and UK Prospectus Regulation Rules, replacing the EU Prospectus Directive and Prospectus Rules, and which extends the employee offer exemption (4.17)
- Recovering PAYE on shares and share options following changes to IR35 legislation (10.9)
- HMRC guidance on tax-advantaged plans during the Covid-19 pandemic
- Updated precedents, include:
- Performance Share Awards (App 6A)
- Deferred Share Awards (App 6B)
- Matching Share Awards (App 6C)
- Discretionary Share Option Scheme appropriate to a listed company (App 7A)
- Savings-Related Share Option Scheme (App 15A)
Mark Ife is a Partner at Herbert Smith Freehills LLP specialising in remuneration and incentives. He advises listed and private companies on the establishment and operation of cash and share-based incentive arrangements. His other areas of expertise include financial services remuneration, the share scheme aspects of corporate transactions, corporate governance and the remuneration aspects of executive recruitment and termination.
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