Employee share plans are arrangements enabling employees to acquire shares in their employing company or its parent or, more unusually, another group company.
Types of employee share plans include:
- share option plans
- share incentive plans
- long term incentive plans
- stock appreciation rights
- equity settled incentive plans.
There are statutory definitions of employee share plans in the UK and it is normally necessary to look at these definitions when examining legal and regulatory issues.
Companies should ensure that their share plans are compliant with equality legislation.