Share Incentive Plan


Also found in: Acronyms.

Share Incentive Plan

a UK scheme introduced in 2000 (originally as the All Employee Share Ownership Plan) which enables employees to acquire SHARES in their company. The Plan is aimed at motivating employees to work more productively and in aligning their interests more closely with those of outside shareholders.

Under the Plan shares can be offered to employees in three ways: partnership shares where employees can buy shares out of their gross pay up to a maximum of £1500 per year (or 10% of gross pay, whichever is lesser). Because shares are bought out of gross pay the employee pays less income tax and national insurance; matching shares given by the employer on the basis of two matching shares for every partnership share bought; free shares given without charge by the employer up to a maximum of £3000 per year.

Shares obtained in this way receive dividends and employees are accorded the normal rights of a shareholder. If the shares are held for a minimum of five years they are free of capital gains tax. See EMPLOYEE SHARE OWNERSHIP PLAN. See also EXECUTIVE SHARE OPTION SCHEME.

References in periodicals archive ?
Having introduced the share incentive plan they have now established an employee benefit trust which has a golden share - a nominal share able to outvote all other shares in certain specified circumstances.
Leighton Reed, Broomfield & Alexander tax director, Allan Meek, managing director employees who have taken a stake in the company through a share incentive plan
The partners each purchased 27 shares and were also allocated the same number of free matching shares as set out under the Company's Share Incentive Plan (SIP).
In a separate announcement, the company issued notice pursuant to the relevant disclosure and transparency rules that four persons (Michel Combes, Andrew Halford, Matthew Kirk and Stephen Scott) holding a directorship or otherwise employed in a managerial role each acquired 182 shares in the company, pursuant to the rules of the Vodafone Group Share Incentive Plan. Combes and Halford are directors of Vodafone Group plc.
The figure represents theamount of tax which could be saved if each of the estimated 865,000 staff currently in savings-related share option scheme invested just half the level of investment permitted under the Government's Share Incentive Plan (pounds 1,500 each), launched in 2001.
He can also draw on benefits worth pounds 593,140 from a medium-term share incentive plan - taking his total potential payout to about pounds 3.1million.
Another part of the offer is a share incentive plan enabling employees to buy Peugeot Group shares tax-free and in return receive some free shares from Peugeot Group.
The drop in Sir Martin's 2016 pay packet reflected the falling value of his long-term share incentive plan, known as LEAP, which eased back from PS62.8m to just over PS41m.
"Employees should make the most of this tax-saving opportunity, and an independent financial adviser can help you decide whether a Share Incentive Plan suits your own financial circumstances.
As a result, staff will now get up to pounds 6,000 in cash before tax and national insurance if they have been at the company since June 2007, plus the pounds 3,000 maximum which the Inland Revenue allows companies to put into a Share Incentive Plan.
The directors and PDMRs were also awarded 27 free matching shares under the company's Share Incentive Plan (SIP).