Falklands : Falkland Islands Company Announces Share Incentive Plan for all Employees
Submitted by Falkland Islands News Network (Juanita Brock) 12.01.2013 (Article Archived on 26.01.2013)
Falkland Islands Holdings has announced that the Company has implemented an HMRC approved Share Incentive Plan
Falkland Islands Company Announces Share Incentive Plan for all Employees
By J. Brock (FINN)
Falkland Islands Holdings has announced that the Company has implemented an HMRC approved Share Incentive Plan available to employees of the Company, including the executive directors, and that Mr. Hudd and Mr. Foster, Chairman and Managing Director respectively, have enrolled in the Share Incentive Plan. The decision was pursuant to the authorities granted by shareholders at the Company's AGM on 21 August 2012.
The main features of the Share Incentive Plan are as follows:
Falkland Islands Holdings offers all employees who are UK tax resident the opportunity to participate in the Share Incentive Plan whether they work full or part time. The Company has extended the scheme to Falkland Islands tax residents, applying the same basic principles of the Share Incentive Plan as are enjoyed by UK tax residents.
Under the scheme a trust is set up to acquire in the market "partnership Shares" on behalf of employees with the cost of these purchases of the Company's Ordinary Shares ("Shares") being met by employees from their monthly salary or weekly wages up to a maximum of £1,500 per annum per employee. The Company then funds the cost of purchasing in the market one "matching Share" for every three partnership shares acquired.
The benefit of matching and partnership shares held by the SIP Trust will be passed to employees after 5 years. Under the terms of the SIP, "matching Shares" will be forfeited if employees leave within three years of the award unless the employee leaves for certain specified reasons, such as redundancy or retirement.
Employees can withdraw their "partnership shares" from the Share Incentive Plan at any time. However, "matching Shares" may be subject to forfeiture if the corresponding "partnership Shares" are withdrawn within three year of purchase.
Shares have to be transferred to employees and employees have to remove their shares from the SIP when they leave employment with a Group company.
Under the terms of the Company's share dealing code, directors and applicable employees will not be permitted to join or leave the SIP or change their contributions during close periods.
The Company's Remuneration Committee will review annually the operation of the Share Incentive Plan.
Shares for the Share Incentive Plan will be purchased in the market around the 7th of each month.
Participation & Dealing of Directors
The executive directors of the Company have elected to participate in the SIP and detail of their elections is set out below.
For the tax year 2012/13 £
Value of partnership Shares
Value of matching Shares
Mr. David Hudd
Mr. John Foster