Do any companies use net settling for LTIPs and share options? Is it seen as a positive step following implementation, and who (I assume the auditors) provided the guidance?
A few pointers:
– check that your scheme rules allow for net settlement;
– would n’t say this was positive or negative; application likely to depend on balance between available headroom and cash availability;
– need to ensure gross benefit flows through payroll and generally that process properly accounts for all sums.
If you need external guidance , your remuneration advisers might be a better place to start otherwise the auditors may end up auditing their own advice. I expect that between you, your HR benefits and accounting teams will be able to work it out.
A few pointers:
– check that your scheme rules allow for net settlement;
– would n’t say this was positive or negative; application likely to depend on balance between available headroom and cash availability;
– need to ensure gross benefit flows through payroll and generally that process properly accounts for all sums.
If you need external guidance , your remuneration advisers might be a better place to start otherwise the auditors may end up auditing their own advice. I expect that between you, your HR benefits and accounting teams will be able to work it out.