Why No New Scheme ???

[Hawkey99]

Just wondered if anybody knows why RM hasn't announced a new scheme.

Most every FTSE 100 company runs these schemes to allow employees to become sure holders in their company.

Any thoughts ???

Thanks

[TrueBlueTerrier]

my guess is that with the threat of IA, the price is going to be affected and they think its a bit too much of a gamble as they may have to set the price low, and they we'll be selling them at too high a price in 3 years when everything has settled down.

[Jefferson Starfish]

Or maybe there aren't any more shares just lying around to sell to employees?

[Lounge Lizard]

my guess is that with the threat of IA, the price is going to be affected and they think its a bit too much of a gamble as they may have to set the price low, and they we'll be selling them at too high a price in 3 years when everything has settled down.

TBT,
So you think everything will have settled down by 2020.
The eternal optimist.

[Bernardson]

Is it no co incidence that the scheme ends and the ability to sell the larger chunk of shares tax free comes at the time when major change is proposed with the possibility of Industrial action? Employers and the Tories always believe that a share holding workforce will buy into the philosophy of the company and be less willing to rebel. The employer takes a long term view. The number of shares made available to the workers is tokenism does anyone really think they want the workforce to have an influence in the running of the company?

[k979aaa]

Because the whole company is sold every share is in a trust fund or owned by companies or even individuals some maybe ex royal-mail employees or just a investor in the market. The share price represents it's value times the issued shares if more shares are issued it would result in a collapse of all shares and companies only do this if they are in deep s**t as it also affects dividends and credit ratings for the company!

[arnold cheshire]

Just wondered if anybody knows why RM hasn't announced a new scheme.

Most every FTSE 100 company runs these schemes to allow employees to become sure holders in their company.

Any thoughts ???

Thanks

new pensions scheme or pay as you earn?

[RobertT]

I assume he means Save As You Earn.

RM did say in their booklet at the time that there were no plans for another scheme!

In 2013 they issued 1 billion shares, some of which were allocated to employees in the form of free shares and for SAYE.

There should really be some shares ‘hanging around’ that previous employees have surrendered when leaving the business, and there is a question mark over what is happening to these. But I wouldn’t have thought they’d be enough to make a substantial further allocation of free shares or SAYE viable.
In fact it wouldn’t surprise me if Moya’s had them!

[toomuchcoke]

Or maybe there aren't any more shares just lying around to sell to employees?

Gee ... If only there was some kind of market where you could buy and sell stocks every working day? Maybe it could even be called a "stock market"?

I used to work for a company that offered a new SAYE scheme every 6 months, and I believe Tesco do one every year? I wish the Royal Mail would start offering one every year which I could then take up each year paying the minimum amount - because I wouldn't be planning on immediately selling but rather very slowly building an ever-increasing position in the company. (Hence the minimum amount and very slowly, because I wouldn't want too much of my net-worth tied up in the company I work for.) But I guess they don't think it's a particular draw for the staff? Yes, I know the scheme was over-subscribed but was that due to larger than expected numbers taking them up on it or due to a smaller number of people wanting to pay more than they'd expected?

[jetblack]

(Hence the minimum amount and very slowly, because I wouldn't want too much of my net-worth tied up in the company I work for.)

Thats part the reason I didn't take up the SAYE - I already have a good wad of RMG shares and I work for them - a lot of eggs tied up in one basket. Yeah - I know there are tax advantages to SAYE (if you pay tax) - but how about diversifying a little via other tax efficient methods ?

[wandle]

The only reason it was oversubscribed is people could see low interest rates and a 'can't lose' opportunity to build up a savings pot that might even show a healthy profit.
it certainly looked a bargain, when the share price was 541p the day before the EU referendum result !!!