| FINANCIAL PARTICIPATION New share plan set to take off The newly-launched all-employee share ownership plan is proving popular amongst leading UK companies, with three-quarters of the top 100 companies considering operating the AESOP, according to a survey published by New Bridge Street Consultants. The share scheme specialists polled FTSE 350 companies about their response to the new AESOP and 100 companies responded. The survey found that as many as 66% of survey participant are considering operating the new type of plan. Three types of share The AESOP was introduced in summer 2000 as part of the Labour government’ s commitment to advance the stakeholding society. It confers generous tax relief on employees, normally provided the shares are kept for five years. Under the Inland Revenue regulations, employers are able to:
Key survey findings New Bridge Street Consultants found:
The AESOP is proving particularly popular in five main sectors: banking leisure, entertainment and hotels software and computer services telecommunications services and transport sectors. It is least popular with real estate companies. But it’ s not the end for SAYE share options According to the survey, the introduction of the AESOP is not likely to affect the use of existing sharesave option schemes: only 3% of companies polled by New Bridge Street Consultants plan to close their SAYE schemes. A final word The survey shows that there is a great deal of interest in the AESOP and its introduction, alongside existing share schemes, is a major step forward in the evolution of employee share ownership in the UK. But the government could make the plan even more attractive if it reduced the period before shares can be taken tax free to three years from five, bringing the AESOP in line with other Inland Revenue-approved schemes . — John Lee, partner, New Bridge Street Consultants. Want to know more? New Bridge Street Consultants is a leading management consultancy specialising in employee share schemes. It regularly advises about 30% of the FTSE 350. It is associated with Frederick W Cook & Co Inc, a leading US compensation consultancy and the international law firm, Clifford Chance. Further information about the survey is available from John Lee or Andrew Udale at New Bridge Street Consultants in London, tel: 020 7282 3030 or email: admin@nbsc.co.uk. To find out more about New Bridge Street Consultants jump to . . . www.nbsc.co.uk. Posted 6 August 2001 |