Employee Share Schemes

Employers can design their own employee share schemes, but most prefer to make use of favourable tax treatment available through the four Inland Revenue approved schemes:

  1. share save (SAYE),
  2. share incentive plan (Sip),
  3. company share option plan (Csop) and
  4. enterprise management incentive (EMI).

The most popular staff option scheme in the UK is the sharesave scheme, also known as save as you earn (SAYE).

Executive share option plans (including long term incentives – Ltips) are used for very senior employees.