Royal Mail: BIS : disposal of shares to employees

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https://www.gov.uk/government/publicati ... -employees" onclick="window.open(this.href);return false;

From:Department for Business, Innovation & Skills
First published:21 July 2015

Sets out the way that government owned shares in Royal Mail will be awarded to eligible employees.

The report sets out the objectives and timing of the award of free shares to eligible Royal Mail employees. The government’s allocation of free shares will allow eligible employees to benefit from the tax advantages of HMRC’s Share Incentive Plan arrangements.

https://www.gov.uk/government/uploads/s ... shares.pdf" onclick="window.open(this.href);return false;

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The Employee Share Allocation Process

4.1 As with the original free allocation, Government intends to allow eligible
employees to benefit from the tax advantages of HMRC’s Share
Incentive Plan arrangements.

4.2 The new allocation will follow the same rules that applied to the original
scheme to promote its longevity, enable employees to benefit from
those tax advantages, and to strengthen employee engagement:

• shares must be held for at least three years. Full tax benefits are
only available if the shares are held for at least five years or for
‘good leavers’4
;

• shares will be forfeited if an employee leaves Royal Mail within
three years of their award. This will not apply to ‘good leavers’
whose shares will vest and benefit from tax advantages upon
departure;

• shares will be allocated to employees equally, regardless of
grade or pay levels. The allocation will be pro-rated based on an
employee’s paid hours to differentiate between full and part time
workers; and

• to be eligible for shares, employees will be subject to a
qualifying period of employment.

4.3 General Logistics Systems (GLS) employees, and those of joint
venture companies, will not be eligible for the scheme, which is
focused on the company that directly delivers the universal postal
service in the UK.

4.4 Employees can opt not to receive shares. Further details will be
provided to eligible employees in due course.

4.5 The Government hopes that eligible Royal Mail employees will
participate and make the most of this opportunity to hold a further stake
in their company.

4.6 The Government will work with Royal Mail to ensure that the allocation
can be implemented efficiently and in a manner that minimises costs to
the tax payer.

4
Good leavers include those retiring (as defined by Royal Mail and the scheme
rules), redundancy, disability or illness, and death.

Government will take forward the allocation of the free shares with
Royal Mail. As set out at paragraph 3.2, the Government expect the
process will be completed in this financial year.

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https://www.myroyalmail.com/news/nation ... res-update" onclick="window.open(this.href);return false;

Government confirms free allocation of 10 million shares

In June, the Government announced it intended to gift an additional 1% of the company’s shares to employees. Government has now confirmed it will make a free allocation of 10 million shares (around 1% of Royal Mail shares) to eligible employees this financial year.

This is on top of the 10% of company shares given to eligible employees at the time of our flotation.

Shares will be allocated to eligible employees equally, regardless of grade or pay levels. Allocations will be pro-rated, based on paid hours, to differentiate between full and part-time employees.

New allocation

As with the original allocation, the shares will be held in the Share Incentive Plan (SIP) so employees can benefit from tax advantages. The shares must be held for at least three years, except in certain circumstances. Full tax benefits will be available after five years.

More information

We are working with Government to take forward this new allocation of Free Shares. Further details will be available in due course.

[paulthepostie]

I assume this means we will be receiving these pretty soon then?, as that article mentions in due course and this financial year?.

[max power]

I assume this means we will be receiving these pretty soon then?, as that article mentions in due course and this financial year?.

Who Knows ????
its royal mail

[TrueBlueTerrier]

I assume this means we will be receiving these pretty soon then?, as that article mentions in due course and this financial year?.

Who Knows ????
its royal mail

The financial year ends 6 April 2016 s loads of time left yet. Also the shares although they are Royal Mail ones, will be coming from the Government. AFAIK RM won't be involved in any of the administration of the issue, except for keeping us informed.

[trythat]

What a bummer, I want to pack it in in the next couple of years and not being 60 or over I'll lose them. Does anyone actually know how many we'll be getting, I think it will be approx 70 ish, so not mega money and certainly not enough to carry on working for

[ratchet]

What a bummer, I want to pack it in in the next couple of years and not being 60 or over I'll lose them. Does anyone actually know how many we'll be getting, I think it will be approx 70 ish, so not mega money and certainly not enough to carry on working for

It'll be 10% of whatever you got the last time (assuming your hours are the same).

So for a full timer 70 sounds about right

[meercat]

What a bummer, I want to pack it in in the next couple of years and not being 60 or over I'll lose them. Does anyone actually know how many we'll be getting, I think it will be approx 70 ish, so not mega money and certainly not enough to carry on working for

By the time you can sell them tax free let's see, 4 years time with USP, Yodel, TNT etc etc taking more and more business we can do this calculation......70x5p=£3.50!

If they are worth 10p each by then you can double that!!!!!

7 English pounds!!