Comparison of employee share schemes

With four types of tax-advantaged share scheme available – enterprise management incentives (EMIs) company share option plans (CSOPs) share incentive plans (SIPs) and save as you earn (SAYE) schemes – plus numerous other non-advantaged alternatives it can be difficult for an employer to decide on the best choice for their own situation.

There are a number of simple differentiations that can offer a starting point:

• Is this scheme available to all employees or a selected few?
• Are shares to be offered immediately?
• Would share options be preferable?
• Is tax saving a major consideration?
• Is the company willing to accept significant upfront costs and future administrative commitment?

Tax-advantaged schemes

The four types of tax-advantaged share scheme have varying conditions and requirements. Many of the requirements and restrictions are harmonised across the schemes but differences remain. EMI plans and CSOPs are both selective which means that companies...