share option scheme


share option scheme
A scheme whereby an employee initially acquires an option to subscribe for shares of the company at some future date. For unapproved schemes, these must not, for tax reasons, be exercisable greater than seven years from the date of the grant. Generally the subscription price is set at the date of grant of the option and the employee will usually exercise his option only if the share price has risen from the date of the grant.

Easyform Glossary of Law Terms. — UK law terms.

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  • share option scheme — / ʃeər ˌɒpʃən ski:m/ noun a scheme that gives company employees the right to buy shares in the company which employs them, often at a special price …   Dictionary of banking and finance

  • approved executive share option scheme — Approved Executive Share Option Scheme/Selective Share Option Scheme A share option scheme approved by the Inland Revenue under the provisions of the Income and Corporations Taxes Act 1988. These types of schemes are by far the most flexible of… …   Law dictionary

  • Selective Share Option Scheme — Approved Executive Share Option Scheme/Selective Share Option Scheme A share option scheme approved by the Inland Revenue under the provisions of the Income and Corporations Taxes Act 1988. These types of schemes are by far the most flexible of… …   Law dictionary

  • Approved Savings-Related Share Option Scheme — A share option scheme linked to a savings contract taken out usually with our building society governed by the Income and Corporation Taxes Act 1988. The limits to the amount that may be saved and the number of shares over which an option may be… …   Law dictionary

  • unapproved share option scheme — A share option scheme that is not Inland Revenue approved. One of the major reasons for using an unapproved scheme is to enable the company to grant an option at a subscription price below the market value of the shares and to avoid the ₤30,000… …   Law dictionary

  • employee share option scheme — A type of share option scheme where the employee is granted an option to acquire shares at the end of the option period for the price at the date the option is granted. If the share price has moved up by then, the employee will have the benefit… …   Law dictionary

  • savings related share option scheme — See SAYE option scheme. savings related share option scheme. Related links employee share ownership plan (ESOP) Practical Law Dictionary. Glossary of UK, US and international legal terms …   Law dictionary

  • savings related share option scheme — An approved share option scheme established by an employer for the benefit of executives or other employees. The Inland Revenue has detailed rules regarding the income tax and capital gains tax chargeable to individuals benefiting from such a… …   Accounting dictionary

  • savings related share option scheme — An approved share option scheme established by an employer for the benefit of executives or other employees. HM Customs and Revenue has detailed rules regarding the income tax and capital gains tax chargeable to individuals benefiting from such a …   Big dictionary of business and management

  • executive share option scheme — An approved share option scheme that entitles a specified class of directors or employees to purchase shares in the company in which they are employed. See: savings related share option scheme …   Accounting dictionary