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targets set are broadly comparable.109 Comparable does not mean identical and under one variant up to 80% to be awarded on the basis of performance as long as the highest reward is not more than four times greater than the award to an employee on similar terms.110 There are also rules about the information to be given to employees.111 |
Free shares are held by trustees and appropriated to the participant.112 The shares must remain with the trustee for a period of at least 3 years and not more than 5.113 The shares must be transferred to any employee leaving the employment (even within the 3 year period)—and a charge may then arise; however the terms of the plan may require that the shares be forfeited when a plan is terminated.114 When shares leave the plan the charge is on the full market value of the shares on leaving.115 The shares may be withdrawn tax-free within the 3 year period if the employment ends because of redundancy or disability or other accepted cause.116 If the shares are withdrawn between years 3 and 5 there is a charge either on the value when transferred or on the value when the option was given, whichever is the lower.117 |