I can’t speak for all companies, but we plan to make a separate offer at the higher limit within 42 days of the change (which comes into effect at the start of the new tax year).
The 20% discount is likely to continue since the cost is not great. A high percentage of participants currently save the maximum £250 and so this will be appreciated. NB we do not at present operate a SIP.
FTSE250said
For approximately ten years, every SAYE invitation was over-subscribed by a factor of 2x or 3x, such that the scaling back process became part of the annual ritual and employees even factored that into the applications they made. The full 20% discount was offered on all but one occasion.
Because of the accounting cost associated with granting options and the fact that participation rates never rose beyond 17% -18%, no invitations have been made since 2010, and it is unlikely that further invitations will be made in the foreseeable future.
There is now a Share Incentive Plan, in which around 8% of employees participate.
FTSE100said
No decision made yet. It will be a surprise if we don’t use the extra flexibility.
FTSE100said
Having first considered headrooms, and the costs involved, we are planning to allow employees to save the full £500 but limit the amount avilable to save in any one year. We have not year decided what the limit per year will be but it is likely to remain £250.
FTSE SMALL CAPsaid
We will look to increase our limit to £500 however we will do some modelling to work out a ballpark P&L charge so that we can give the Board comfort that this does not become excessive. The reality is that only a proportion of employees will be able to afford a £500 a month deduction so we will probably assume that employees currently at the £250 maximum will look to up their contribution to £500.
FTSE250said
Yes we will increase to the new limits. Some fancy footwork may be required to delay invitations until after the start of new tax year.
Since most companies give 20% discount on option price, the higher contributions will mean a higher charge to P&L but the participation levels amongst employees make it worth it.
I can’t speak for all companies, but we plan to make a separate offer at the higher limit within 42 days of the change (which comes into effect at the start of the new tax year).
The 20% discount is likely to continue since the cost is not great. A high percentage of participants currently save the maximum £250 and so this will be appreciated. NB we do not at present operate a SIP.
For approximately ten years, every SAYE invitation was over-subscribed by a factor of 2x or 3x, such that the scaling back process became part of the annual ritual and employees even factored that into the applications they made. The full 20% discount was offered on all but one occasion.
Because of the accounting cost associated with granting options and the fact that participation rates never rose beyond 17% -18%, no invitations have been made since 2010, and it is unlikely that further invitations will be made in the foreseeable future.
There is now a Share Incentive Plan, in which around 8% of employees participate.
No decision made yet. It will be a surprise if we don’t use the extra flexibility.
Having first considered headrooms, and the costs involved, we are planning to allow employees to save the full £500 but limit the amount avilable to save in any one year. We have not year decided what the limit per year will be but it is likely to remain £250.
We will look to increase our limit to £500 however we will do some modelling to work out a ballpark P&L charge so that we can give the Board comfort that this does not become excessive. The reality is that only a proportion of employees will be able to afford a £500 a month deduction so we will probably assume that employees currently at the £250 maximum will look to up their contribution to £500.
Yes we will increase to the new limits. Some fancy footwork may be required to delay invitations until after the start of new tax year.
Since most companies give 20% discount on option price, the higher contributions will mean a higher charge to P&L but the participation levels amongst employees make it worth it.