The voice of employee share ownership

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1 NEWS The voice of employee share ownership ifs ProShare in the news It has been a busy start to 2014 in the employee share ownership industry. Following the announcement at the end of last year in the Chancellor s Autumn Statement that monthly participation limits on two of the most popular employee share ownership schemes, Sharesave and share incentive plans (SIPs) would be increased, employee share ownership has received significant attention in the national and trade media. Several important trade publications such as Employee Benefits and HR Magazine continue to discuss the increased participation limits at length. Workplace Savings and Benefits in particular explained the changes in detail, outlining the campaign and what it will mean for the industry. Meanwhile, ifs ProShare put together an advice guide for businesses looking to take advantage of the contribution ifs ProShare Business Briefing 2014 Claire Hobson, BIS Director of Business & Society, May 13, 2014 From 2008 until late 2011 Claire worked as Deputy Director of Financial & Professional Services at UK Trade & Investment (UKTI) before returning to BIS as Director of Business & Society, a role which she has successfully undertaken for the last three years. In her current role Hobson has been heavily involved in the employee ownership and mutualisation agenda being pursued by BIS as well as playing an important role in the successful employee share plan launch at the recently privatised Royal Mail. Venue: ifs ProShare,, Monument Street, April 2014 rises for Real Business, a publication designed for managers and business owners. The advice guide provided hints and tips on getting an employee share scheme started, along with a further explanation of how the changes announced by the Chancellor will work. While the changes are undoubtedly good news, ifs ProShare continues to lobby to link future rises with inflation, in effect giving it the same status as ISAs. The extension to the campaign was again covered by Workplace Savings & Benefits and Payroll Professional magazines. Finally, the industry at large continues to be discussed by policymakers. The Times focused on Graham Brady MP s speech at the Keith Joseph Lecture, in which he outlined the benefits of employee share ownership as well as sharing thoughts on promoting it further. ifs ProShare in Edinburgh 16 May Join us for a Share Plan forum kindly hosted by RBS at their Edinburgh Head Office. The forum will run from Sessions will be led by Baker & McKenzie, Solium GSP, New Bridge Street Consultants, YBS Share Plans and Wealth at Work. If you would like to reserve your place please visit the events page of our website. This forum is intended to encourage participation by Scottish companies and for people to meet ifs ProShare for the first time After three enjoyable years I am moving on to pastures new and leaving ifs ProShare on 24 July. I would like to take this opportunity to thank all of our members for your support during my time as Head of Employee Share ownership. This position is now being advertised on the ifs ProShare website and should you wish to be considered for the role or know anyone that you feel may be suitable please note the closing date of 12 May. For further information visit Jobs in employee share plans or to discuss the role telephone John Collison on [email protected]

2 The busy IPO market is giving more employees the opportunity to benefit from share ownership. As we predicted last year, the first part of 2014 has seen a renaissance in the IPO market the best first quarter since before the financial crisis. Rather than wait until post IPO, it is increasingly common for an employee share plan to be introduced at the point of the company s listing to enable employees to benefit immediately. This is a clear acknowledgement of the importance of share plans both as part of an overall employee benefits package but also as a means of bringing employees on the journey from private to public company and demonstrating the benefits. Currently SAYEs are more popular than a SIP from an all-employee plan perspective, possibly because of the doubling of the monthly savings limit which was announced last autumn and is available from this month. Over 1 in 10 employees in a public limited company participate in an all-employee share plan. There is good reason for employees to get involved when their company lists, especially given the increases in contribution limits. As well as the usual benefits associated with share plans potential of free shares, tax benefits and low option prices the performance of recent IPOs suggests that any shares purchased or awarded at flotation stand a good chance of increasing in value. Our research 1 shows that 70% of IPOs see an increase in share price on debut. Detailed analysis of 10 years of UK IPOs shows that in their first month new listings outperformed the FTSE All Share 7.0% on average. After 6 months, they are 11.5% ahead. After a year, the average listing has outpaced the index by 10.5%. Five years from IPO most relevant to those in approved share plans - the trend persists. Although the number of companies outperforming the market falls to a third (32%), on average there is still an outperformance of 3.7%, even accounting for companies that went into administration or were bought out. This strong performance could be in part due to the employees themselves. The UK Employee Ownership Index reports on companies on the London Stock Exchange (LSE) and the Alternative Investment Market (AIM) which have 3% or more of their issued share capital held by, or for the benefit of, employees other than main board directors. David Isaacs Head of Registration and Share Plans Development Following our successful IPO in 2013, Countrywide plc sought to implement a new Share Incentive Plan for our employees to share in our success. We are now moving in to the second phase of our SIP and as a result we welcome the news that the partnership share limit will be increased to 1,800 from April We are keen for our employees to take advantage of this increase and are pleased to be amongst the first organisations to adopt the new limit. Marie Jay, Group Head of HR, Countrywide 1 The Index s data shows that these companies consistently outperform the FTSE All-share Index, with their shares having risen three times as fast.

3 Celebrating Excellence ifs ProShare Annual Awards Celebrating Excellence Employee Share Plans Conference 14 October On 25th February we held our annual Celebrating Excellence event. Once again it was a huge success and was attended by an audience of nearly 100 people; including ifs ProShare members, advisers and corporate share plan professionals. During the event the winners shared their valuable insights with our members. ifs ProShare would like to thank Baker & McKenzie for once again hosting Celebrating Excellence. We also extend a big thank you to all our members for their ongoing support and our panel of judges for their sterling work. We are delighted to announce YBS Share Plans as our Major Sponsor for the ifs ProShare Employee Share Plans Conference on Tuesday 14 October at etc.venues, St Paul's. Invitations to reserve your place and further sponsorship opportunities for this event will be issued in May. For the last few years, we have also asked our members to submit suggestions for presentation topics. This has worked very well and led to a wide variety of sessions which has added to the overall success of the event. For 2014 we are again inviting members to submit their ideas for presentation topics which either they would be able to deliver at the conference or they know someone who could. Please note that all adviser and administrator speakers will need to be members of ifs ProShare and pay to attend the conference. For companies who are presenting there will be no cost to attend. If you wish to suggest a topic or speak please complete a speaker suggestion template available from [email protected] and return this with your idea(s) by Monday 19 May and please use a separate form for each idea you are submitting. We are interested in sessions of a technical or practical nature as well as case studies from companies. The latter are always of interest, particularly with other company delegates. We also welcome ideas for panel discussions and would be happy to work with you on putting together a panel to cover a particular topic. We will review the suggestions received and decide on the presentations which we feel will be of most relevance and interest to delegates and provide the greatest variety. Presentation slots will be 40 minutes duration including time for questions. It is not always possible to accommodate all suggestions and we make every effort to deliver a balanced agenda.

4 Annual Awards Dinner 26 November The ifs ProShare Awards Dinner will be held on Wednesday 26 November at the Grand Connaught Rooms, London. This year marks the 22nd year of these prestigious Annual Awards and we are delighted to announce as our Exclusive Award Dinner Partner. Since our establishment, ifs ProShare has celebrated the high standards evident in many organisations and continue to acknowledge excellence in the employee share ownership industry. We celebrate best practice and innovation in the design, communication and delivery of employee share plans and other employee share ownership arrangements. The categories for 2014 are as follows: Best New Share Plan Best International Share Plan Most effective communication of an Employee Share Plan Up to 1,000 employees 1,001-15,000 employees 15,001+ employees Best commitment to employee share ownership for small companies with fewer than 250 employees Best employee share plan following a major corporate change Most effective use of technology Best overall performance in fostering employee share ownership Up to 1,000 employees 1,001-15,000 employees 15,001+ employees All entry forms must be completed and submitted via the website by close of business on Friday 5 September. It will not be possible to submit entries after this date and paper applications are not permitted. If you would like to discuss entering the 2014 ifs ProShare Awards please telephone John Collison on If you would like to attend the dinner and book tables or discuss sponsorship opportunities watch out for details to be released in May.

5 Dates for your Diary ifs Proshare Training Courses and Workshops 8 May Global employee share plans practical solutions to difficult legal and tax problems This workshop, facilitated by Deloitte, will cover both the legal and tax issues to consider when a company intends to operate a share plan globally. This session will focus on the key legal and tax issues to consider when offering share plans overseas, with an emphasis on practical solutions to difficult problems. This workshop will be particularly relevant for legal, tax and HR professionals who have responsibility for global share plans. 20 May Introduction to Employee Share Ownership Technical This course covers three areas; the jargon associated with employee share plans, the HMRC approved plans (SAYE, SIP, CSOP, EMI) and the most commonly used unapproved plans (LTIPs, unapproved options, etc). Course presenters will explain the design features of each plan and tax charges/concessions linked to each plan type. 10 June Corporate actions and their impact on ESO In recent times there has been an increase in the variety of corporate actions being seen. In some cases these involve restructuring a company or a take-over whereas in others funds are raised by way of rights issue or other capital raising exercises. The course will have technical sessions on some of the more common corporate actions which will be complemented by considering the impact on plan administration. Exchange House Primrose Street London EC2A 2EG 26 June Update on the new DRR regs and voting regime for executive pay following the AGM season This session comprises a review of the recent AGM season, with a particular focus on investor feedback and reaction to companies remuneration reports and remuneration policies under the new regime for executive pay. We will consider how companies have approached particular aspects of the new remuneration report regulations and look at whether the new regime has had any influence on developing trends in share plan design and the approach to share-based remuneration. 3 July Corporate governance, disclosure for ESP This workshop, facilitated by Deloitte, will focus on key corporate governance issues that are applicable to share plans. The session will also explore the main share dealing requirements together with disclosure and reporting obligations. This workshop will be particularly relevant for legal, tax and HR professionals who have responsibility for share plans. 30 Crown Place London EC2A 4ES

6 Dates for your Diary ifs Proshare Training Courses and Workshops 17 September Introduction to Employee Share Ownership Technical This course covers three areas; the jargon associated with employee share plans, the HMRC approved plans (SAYE, SIP, CSOP, EMI) and the most commonly used unapproved plans (LTIPs, unapproved options, etc). Course presenters will explain the design features of each plan and tax charges/concessions linked to each pan type. 16 October Workshop International Round Up Jeremy Edwards and other members of the Baker & McKenzie LLP will give you an overview of the latest developments affecting the launch and operation of global share plans and how companies can best approach the implementation and operation of global share plans. The workshop will look at the tax consequences and securities laws requirements in various key jurisdictions. 21 October Internationally Mobile Employees This workshop looks at the highly topical subject of the taxation of share awards and options held by internationally mobile employees. The workshop looks at the taxation of internationally mobile employees both under the existing regime and under the new statutory regime that will be applicable from 6th April, There will be winners and losers under the new regime and there may be legitimate planning steps that employees can be taking before 5th April, 2015 to minimise future tax liabilities (especially for incoming employees from the Middle East and Asia). The workshop will have case studies explaining the tax and social security treatment of individuals moving from the UK to USA, Australia and the Netherlands and vice versa. Delegates will be welcome to request discussion of other scenarios and to discuss practical issues that they are coming across. The workshop will also look at related topics affecting internationally mobile employees and the ability to obtain corporation tax deductions with respect to their participation in share plans (including commentary on new corporation tax legislation coming into effect in April 2015). 100 New Bridge Street London EC4V 6JA 19 November Who s Doing What? This workshop is designed to give you an overview of the types of employee share plans that leading UK listed companies are operating and how companies can react to the economic climate in Based on extensive research undertaken by Baker & McKenzie LLP and ifs ProShare surveys, Baker & McKenzie LLP will facilitate this workshop by sharing the results of the surveys and giving an overview of the types of share plans currently being offered by FTSE 100 companies. Booking Each course will give delegates the practical skills and knowledge they need when managing or advising on an employee share plan. If you are interested in attending, all you need to do is select the course that best suits your needs and make a booking. To make a booking, please download and complete the relevant Booking Form from our website; and return it to the address given on the form. Courses are booked on a first come, first served basis. T +44 (0) F +44 (0) E [email protected] W