On Tuesday 21 April 2020, the QCA held the webinar Share Plan Considerations for Smaller Quoted Companies. The webinar provided an overview of a range of topics, including an explanation of the schemes available to small and mid-size quoted companies and the potential issues companies may face when implementing their own share plans.
Below is an overview of the presentation and the key discussion points that arose during the webinar.
What a company is seeking to achieve by implementing a share plan (Fiona Bell, RSM)
- The number of tax-advantaged share schemes operated by companies has generally increased in recent years.
- The QCA’s Employee Share Schemes Survey indicated that the majority of companies operated a share scheme, with EMI, CSOP and LTIPs being the most popular schemes.
- The main reasons companies employ share schemes is to (1) reward employees; (2) recruit and retain staff; and (3) encourage employee ownership.
What the main types of plans there are to consider (Andy Goodman, BDO LLP)
- The key structures and drivers
- Key questions for plan design
- How a company may achieve more tax efficient outcomes
- All-employee share plans
- Questions to consider in light of Covid-19.
What the legal considerations are (Elissavet Grout, Travers Smith LLP)
- Company Law
- AIM/Listing Rules
- Corporate Governance
- Share dealing
- Employment Law.
The administrative aspects of operating a share plan (Jennifer Rudman, Equiniti)
- Internal and external stakeholder engagement
- Satisfying grants/awards
- Whether the plan is administered in-house, outsourced, or elements of both
- Timetable and procedures
- Share plan participation support
- Maintenance of plan and participation data
- Internal and external reporting requirements
- Regulation and compliance.
Please click above to watch the webinar.