Royal Mail staff must wait for full shares allocation

[TrueBlueTerrier]

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Royal Mail employees will not receive their full free share allocation until April 2014.

Using calculations based on a maximum share price offer of 330p per share, the 150,000 eligible full-time employees were due to immediately receive around 725 free shares each, while part-time staff would receive a smaller number of shares on a pro-rata basis.

Vince Cable, business secretary, confirmed that Royal Mail employees would be given 10% of the organisation’s shares after its flotation on the London Stock Exchange on 11 October.

The surge in the share price once normal market trading began, from 330p to an average 540p per share within a few days, meant that the 10% share offer had to be amended.

This is because employee participants in a tax-approved share incentive plan (Sip), the share scheme being used by the postal workers as a home for free shares, are only allowed a maximum investment of £3,000 worth of free shares per year.

Thus, the surge in the Royal Mail share price put the value of the free shares above the annual limit by around £1,000.

The organisation will provide employee with 613 shares, instead of the allocated 725, in the current tax year, and will hand out the remaining shares after April 2014.

A spokesperson from the Royal Mail, said: “This means that 150,000 postal workers will have to wait until 7 April before they can receive into their individual Sip accounts the delayed balance of their free share allocation – the ‘missing’ 112 shares each.

“Nevertheless, postal employees will hardly be complaining about the much-enhanced value of their free share allocations.”

[HUGSTEREFC]

Hello to all my comrades, visit the site on a daily basis although this is my 1st time of posting. Just a question to anyone in the know-Where does the dividend payments on the remaining unallocated shares go whilst we wait to receive them? This also extends our waiting period of selling the remainder of shares without penalty.

[wandle]

Hello to all my comrades, visit the site on a daily basis although this is my 1st time of posting. Just a question to anyone in the know-Where does the dividend payments on the remaining unallocated shares go whilst we wait to receive them?

The first dividend will not be declared until well after the end of the current financial year, when the 2012/13 results have been audited and announced to the Stock Exchange and to the media. The payment is likely to be 14p per share. At the time the dividend is declared, we will already have been allocated the 112 shares that, together with the 613 allocated on 15th October 2003, make up the full allocation of free shares. Thus making ALL of our share allocation eligible for that first dividend.

725 x 14p = £101.50 each

This also extends our waiting period of selling the remainder of shares without penalty

As I pointed out on another thread, would you have preferred:

a) the share price to have risen to 489p on October 15th (which it did), forcing the split allocation, and be as high as 578p yesterday OR
b) the share price to have been 413p on October 15th, so you could receive all 725 shares in one hit (as they would have had a total value of £2994.25, below the permissible tax threshold)

If the share price had only been 413p at the allocation point, I very much doubt the share price would now be as high as 578p. More like 500p !

I am happy to wait a mere six months longer to finalise selling my shares, if the total sale value overall is much greater !!!

[meweavy]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

[barbario]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

[hantsman]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

Your clearly don't know how proper shares work in the stock market, do you have a Crystal ball?

[meweavy]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

Your clearly don't know how proper shares work in the stock market, do you have a Crystal ball?

No but I know how royal mail works.

[meweavy]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

Your clearly don't know how proper shares work in the stock market, do you have a Crystal ball?

And who's to say that there will even be a royal mail in 3 years?let alone royal mail shares.
3 years protected terms and conditions, 3 years before we can cash the shares.
What happens after 3 years is anyones guess.
No royal mail.
No royal mail shares.

[hantsman]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

Your clearly don't know how proper shares work in the stock market, do you have a Crystal ball?

And who's to say that there will even be a royal mail in 3 years?let alone royal mail shares.
3 years protected terms and conditions, 3 years before we can cash the shares.
What happens after 3 years is anyones guess.
No royal mail.
No royal mail shares.

Does not work like that, these are not colleague shares, suggest you read up abit.

[mlw]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

Your clearly don't know how proper shares work in the stock market, do you have a Crystal ball?

No but I know how royal mail works.

Glad someone does!!

[UnhappyGremlin]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

Your clearly don't know how proper shares work in the stock market, do you have a Crystal ball?

No but I know how royal mail works.

Glad someone does!!

Shame the board is clueless.

[meweavy]

In 3 years the shares wont be worth the paper they are printed on.
Zilch nada nothing.
Why are people so concerned about these bogus shares??
Fair enough if someone has invested now, but the shares we were given wont be worth jack shxt.

Your clearly don't know how proper shares work in the stock market, do you have a Crystal ball?

No but I know how royal mail works.

Glad someone does!!

I mean in terms of getting stitched with shares etc.

[biscuit1957]

I was told we get intrim divi this Dec

[hantsman]

I was told we get intrim divi this Dec

I give up

[bogstandard]

when it was announced RM would be sold back in September i attended a meeting in Birmingham where someone pointed out that RM had already set the share payout at £140-144M. it would have been £200M but it wasn't a full year.
Has this been statement been revoked then?