In July 2023, we issued a survey to our corporate members to understand their views and experiences of implementing a Share Incentive Plan (SIP) and/or Save As You Earn (SAYE) share scheme in their business.
Overall, 20 companies responded to the survey which included a mixture of open and closed questions. The key findings are as follows:
- Of the 20 respondents, 80% offered a SIP and/or SAYE scheme.
- 35% applied both, 25% offered only a SAYE plan and 20% offer just a SIP plan.
- The top three reasons given for providing SAYE, SIP or both plans were: (i) ‘To create a feeling of ownership in the company’ (100%); (ii) ‘To retain skilled workers in the company’ (62.5%); or (iii) ‘To improve staff moral and motivation’ (62.5%).
- Of those companies that do not employ either share scheme, the three most popular reasons given for not doing so were: (i) ‘Too complex to implement’ (50%); (ii) ‘Too expensive’ (50%); and (iii) ‘too time consuming’ (25%).
- Over two-thirds of companies that offer one or both schemes were in favour of reducing the SIP tax-freeholding period from 5 years to 3 years.
- Of those companies that do not use either share scheme, half of all respondents were in favour of reducing the SIP tax-freeholding period from 5 years to 3 years.
If you would like to read the results in full, please click here .