SHARE INCENTIVE PLANS
Employers face dilemma over Sips
While companies are keen for employees to hold on to shares acquired through a share incentive plan for as long as possible, there are ethical issues around how strongly the “escape window” is publicised to staff, according to a report by Employee Benefits magazine.
%ADVERT%
Last year saw share incentive plans (Sips) celebrate their five-year anniversary, when employees were given their first opportunity to exit the plans and take advantage of the tax breaks on their shares. According to Employee Benefits magazine, employers face something of a dilemma over whether they should make shareholders widely aware of the tax breaks available after five years or draw minimal attention to the date to encourage employees to leave share where they are.
Want to know more?
Title: “A buyer’s guide to share incentive plans”, by Kate Donovan, Employee Benefits, March 2007.
Availability: You can access this report on the Employee Benefits web site at www.employeebenefits.co.uk/item/2359
Employee Benefits magazine was launched in February 1997 as the first UK magazine to help companies align their benefits strategy with their corporate objectives. It’s the only publication to examine the full spectrum of benefits – from pensions and health insurance to company cars and crèches. To find out more visit www.employeebenefits.co.uk.