share incentive plan

share incentive plan
Formerly known as the all-employee share ownership plan (AESOP). Introduced by the Finance Act 2000, a plan under which shares are held by a trustee on behalf of an employee under the terms of a HM Revenue & Customs (HMRC) approved trust and all employees and executive directors must be eligible to participate in the plan provided that certain criteria are met.
The plan enables companies to make four different types of share award: "free" shares, "partnership" shares (paid for by employees out of pre-tax salary), "matching" shares (which companies can give to employees who purchase partnership shares) and "dividend" shares (purchased with dividends from other plan shares). There are a number of tax advantages for the employer and employee available.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • share incentive plan — UK US noun [C] FINANCE, STOCK MARKET, HR ► STOCK INCENTIVE PLAN(Cf. ↑stock incentive plan) …   Financial and business terms

  • Share Incentive Plan — The Share Incentive Plan (the ‘SIP’) was first introduced in the UK in 2000. SIP s are an HMRC (Her Majesty s Revenue Customs) approved, tax efficient all employee plan, which provides companies with the flexibility to tailor the plan to meet… …   Wikipedia

  • stock incentive plan — UK US noun [C] (abbreviation SIP, also share incentive plan) FINANCE, STOCK MARKET, HR ► an arrangement where employees own a percentage of their company’s shares so that they make money when the company makes a profit: »He will continue to defer …   Financial and business terms

  • Sales Incentive Plan — A Sales Incentive Plan (SIP) is a business tool used to motivate and compensate a sales professional (or Sales Agent) to meet goals or metrics over a specific period of time, usually broken into a plan for a fiscal quarter or fiscal year. A SIP… …   Wikipedia

  • share incentive scheme — Any scheme in which employees who achieve personal or group performance targets are rewarded with shares in the company. There are many different types of scheme. In recent years, some companies have been severely criticized by shareholders for… …   Accounting dictionary

  • share incentive scheme — Any scheme in which employees who achieve personal or group performance targets are rewarded with shares in the company. There are many different types of scheme. In recent years, some companies have been severely criticized by shareholders for… …   Big dictionary of business and management

  • incentive — in‧cen‧tive [ɪnˈsentɪv] noun [countable] something which is used to encourage people to do something, especially to make them work harder, produce more or spend more money: • tax incentives for first time home buyers • The company proposed a… …   Financial and business terms

  • employee share ownership plan — UK US noun [C] UK (US employee stock ownership plan) FINANCE, HR ► a benefits plan in which employees own a percentage of their company’s shares, which are bought and managed for them by a trust (= separate organization): »An employee share… …   Financial and business terms

  • all employee share ownership plan — (AESOP) A HM Revenue & Customs approved share scheme which offers tax benefits, now known as share incentive plans. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • employee share ownership plan — (ESOP) A discretionary trust, normally for the benefit of employees, ex employees and dependants. Used to supply shares on the exercise of share options as an alternative to issuing new shares. Also used in conjunction with long term incentive… …   Law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”