Share Plans and Employee Incentives: Shaping New Developments into Solution-Focused Answers for Clients

Programme

1. Chair's Introduction

   Share plans and employee incentives: Shaping new law into solution-focused answers for your clients

   Chaired by Mahesh Varia of Travers Smith

   Mahesh edits the employment income chapter of “Revenue Law – Practice and Principles”. He advised Nikkei on the incentive aspects of its £844m acquisition of The Financial Times Group.

2. Growth shares

   How do you create tax-efficient structures in the face of inconsistent valuation methodologies, such as valuing growth shares, backed up by practical examples?

   Answered by Hannah Tipper of Deloitte

   Hannah's specific interest is the valuation of non-quoted shares for complex employee incentive arrangements and transactions. She is highly experienced in leading negotiations with HMRC.

3. CSOPs opportunities

   How do you leverage new opportunities presented by Company Share Option Plans (CSOPs) to incentivise employees and gain a competitive edge for your clients?

   Answered by David Ellis of BDO

   David is “a seasoned employee incentives expert with deep expertise in developing innovative, robust and fit-for-purpose solutions.” He heads the Strategic Awards Advisory Group.

4. EMI optimisation

   Given new HMRC guidance, how do you exercise discretion in Enterprise Management Incentive (EMI) share plans, mitigate pitfalls over tax status, and secure successful outcomes for clients?

   Answered by Mark Ife of Herbert Smith Freehills

   Mark is the author of “Employee Share Schemes” and “Employee Share Plans: International Legal and Tax Issues”. He assisted Sky with the competing takeover bids by Fox and Comcast.

5. EBT insights

   What are the latest ideas and innovative approaches in developing tax-efficient structures for Employee Benefit Trusts (EBTs) and share awards to the advantage of clients?

   Answered by Fiona Bell of RSM

   Fiona advised the Office of Tax Simplification on its two share schemes reports, and she chairs the Quoted Companies Alliance Share Scheme Experts Group. Her specialism is employee ownership.

6. Vermilion Holdings litigation

   With the Vermilion Holdings litigation bubbling away, is an option granted by a company as part of a refinancing exercise an employment-related securities option, and what are the implications for client advice?

   Answered by David Pett of Temple Tax Chambers

   David acted in Vermilion v HMRC and Glais House v HMRC. He is a joint editor of “Employee Share Schemes” and a member of the Office of Tax Simplification’s share schemes working party.

7. EOT realities

   What are the realistic and achievable options when selling a company to, and out of, an Employee Ownership Trust (EOT), with examples of successful implementation?

   Answered by John Dunlop of DAC Beachcroft

   John specialises in advising on share schemes of all types, particularly Employee Ownership Trusts. He has "an excellent breadth of knowledge, understanding and strategic sense."

8. Disguised remuneration scenarios

   Is there any wriggle room in potentially disguised remuneration situations such as (1) one employee issuing options to another over their shares and (2) loans to buy shares not made by employers or banks?

   Answered by Ian Shaw of Korn Ferry

   Ian is "acclaimed for his skill in employee share schemes and incentives." "He is technically astute, always commercial and excellent at simplifying matters for everyone to understand."