“I wonder if anyone has experience of selecting the timing of setting the option price for an SAYE invitation.
Within the 42 day window we have always set the price on the first possible day after our interim announcement. This year the Registrars suggested reducing the rush and setting it the following week.
This then puts the invitation date as one day ahead of the ex dividend date. One would assume that the share price will drop on the ex dividend date thereby improving the option price for employees.
This sounds great – but does anyone know of a reason why we shouldn’t cherry pick the date to favour the option price setting?”
Timing of option price setting for Sharesave has been consistently after ex div date.
Only an issue of course if full 20% discount is proposed.
For us the problem doesn’t arise as our ex div date is much later, but if the SAYE invitees aren’t benefitting from that dividend directly, then what’s wrong with them not having to “pay” for it?
I agree it is good preactice to wait a few days to let the price settle. However, it does not seem appropriate to take advantage of the ex dividend date. Suggest you move the ex div date forward a few weeks to avoid this problem.