This report, written and researched by e-reward, is the second and concluding part of a research study designed for those new to, or seeking a wider perspective, on employee share plans. It comprises three case studies.
Part 1, published in issue 95, provided an overview of employee share ownership in the UK, including the political background, a description of the major tax-advantage schemes and the business case for Esops.
Case study 1: IGas
Name: Share Incentive Plan (SIP)
Business: British oil and gas explorer and developer, producing 3,000 barrels of oil and gas a day from 100 sites across UK.
Case study 2: Pearson
Name: Worldwide Save for Shares Plan (WSSP)
Business: Global publisher, focusing on learning and education materials and services. Provides learning materials, technologies, assessments and services to teachers and students worldwide, and also owns Financial Times Group.
Case study 3: Telefonica
Name: Global Employee Share Plan (GESP) 2012
Business: One of world's leading integrated operators in telecoms sector, providing communication, information and TV services in Europe and Latin America.
CONTENTS
EXECUTIVE SUMMARY
Profile of case-study companies
CASE STUDY 1: IGAS
Organisation profile
Who e-reward interviewed
Why a SIP?
Matching shares
Bonus shares
Share disposal
Communications and launch
Participation high
Future plans
Lessons learned
The tax and NIC advantage
CASE STUDY 2: PEARSON
Organisation profile
“Brave, imaginative and decent"
Share save design
Global challenge
Awareness and participation
Communications strategy
Evaluating and reviewing
Renewing and refreshing the plan
Lessons learned
CASE STUDY 3: TELEFONICA
Organisation profile
Who e-reward interviewed
Share purchase plus gifting
Single enrolment site
Rationale and challenges
Take-up and spending patterns
Communicating the GESP
Share plan and total reward
Measuring effectiveness
Producing alignment
Lessons learned