Will benefits of new share for rights scheme outweigh costs?


Will benefits of new share for rights scheme outweigh costs?

A new blog on People Management Magazine Online looks at whether the benefits of the government’s new “employee shareholder” status - the so-called “share for rights” scheme - will outweigh the costs.

Paula Volkmer, a specialist in employment law, and Emma Bailey, a specialist in tax law at Fox Williams LLP, reckon that the new status is most likely to appeal to companies with significant potential for capital growth that are already using employee share schemes to incentivise and reward key personnel, and have experience of dealing with share valuations.


They conclude:

“Many other employers may take the view that the benefits of giving employees shares in return for reduced employment rights do not outweigh the costs and other difficulties of putting in place such arrangements - particularly for lower paid employees.”

Want to know more?

Title: “The cost of rights for shares”, Paula Volkmer and Emma Bailey, People Management Magazine Online, 4 July 2013.

Availability: Read the article online at www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2013/07/04/the-cost-of-rights-for-shares.aspx.