Employer's Guide to Time and Performance Based Share Option Plan (Non Tax-Advantaged)

This legal template provides a comprehensive guide for employers in the United Kingdom on the implementation and maintenance of a Time and Performance Based Share Option Plan (Non Tax-Advantaged).

The document outlines the legal framework and requirements under UK law that employers must adhere to when offering share options to their employees based on specific time and performance goals. It covers essential elements such as eligibility criteria, grant of options, vesting schedule, performance metrics, exercise periods, and termination provisions.

The template also includes detailed provisions regarding administration and governance, including the establishment of a share option plan committee, plan documentation, employee communication, and record-keeping. It offers guidance on compliance with relevant legislation, such as the Companies Act and the UK Corporate Governance Code.

Additionally, the template addresses the tax implications associated with this type of share option plan, emphasizing that it is non tax-advantaged, meaning that employees may be subject to income tax and national insurance contributions upon exercising their options.

Overall, this Employer's Guide to Time and Performance Based Share Option Plan (Non Tax-Advantaged) under UK law is a comprehensive resource for employers seeking to implement a legally compliant and well-structured share option plan that aligns with their organization's objectives and incentivize employees' performance.