See Company Share Option Plan (CSOP).
A co-operative is a business organisation which is owned and operated by individuals for their mutual benefit and which has a constitution which adheres to “co-operative principles”.
A form of Industrial and Provident Society (see below) whose purpose is to trade for the benefit of the community.
A special form of company, designed for social enterprises which wish to use their profits and assets for the benefit of the community. It is likely to be quicker and easier to establish than a Community Benefit Society (see above).
An option scheme providing income tax advantages for UK employees working for independent companies. CSOP requires prior approval by HM Revenue and Customs; also known as Approved Options. For more information see our Guide to the Company Share Option Plan (CSOP).
See Nil Paid Shares.
A bonus paid by an Employee Benefit Trust.
See Enterprise Management Incentives Option Scheme.
See Enterprise Management Incentives Option Scheme.
See Enterprise Management Incentives Option Scheme.
A discretionary trust for the benefit of employees of a particular company or group of companies. Also abbreviated to EBT or called an employees' trust, employee trust, employees' share trust, employee share ownership trust or ESOT.
A generic term describing any kind of employee share plan or employee share scheme; also used to describe an arrangement involving an employee benefit trust.
A mutual whose members are its employees. (See also Mutual.)
A company the whole or a majority of which is owned by or on behalf of its employees, normally on a widespread basis so that all or most staff have a stake in their company.
See Employee Benefit Trust.
See Employee Benefit Trust.
See Employee Benefit Trust.
An option scheme providing income tax advantages for UK employees working for smaller, qualifying and independent companies, also known as EMI options, EMI option plan, EMI share option. For more information see our Guide to Enterprise Management Incentives (EMI Options).
Employees Share Ownership Trust. See Employee Benefit Trust.
See Hurdle Shares.
Shares of a special class which only acquire a capital value if the value of the whole company exceeds a specified threshold; also known as Growth Shares.
A form of business ownership often used by co-operative businesses (see above), registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965. It is also sometimes used for Community Benefit Societies (see above), which are similar to charities.
Describes an arrangement under which shares in a company are jointly acquired by an employee and an employee benefit trust. The value of the trust’s interest in the shares is normally fixed at the same level as the shares’ worth when they are acquired, whereas the value of the employee’s interest is based on any growth in value of the shares after their acquisition.
A business which is jointly owned by two companies or groups, pooling their expertise.
A separate legal entity which has its own legal personality. It confers on its owners (shareholders) limited liability, so that they are not personally liable to the company's creditors.
A form of partnership in which the members have limited liability, so that - unlike a conventional partnership - no member is liable for the obligations created by their fellow members.
Normally a form of unapproved (non-approved) option scheme in which options are granted with an exercise price of zero but may only be exercised if a performance target is achieved. For further information see our Guide Unapproved Share Options and Long Term Incentive Plans (LTIPs)
A mutual is owned by its members and is created to fulfil a shared purpose. Its members would typically be its customers (e.g. the Co-Op stores), its suppliers (e.g. a farmers’ co-operative) or its employees (e.g. an employee-owned company such as John Lewis). See our Guide to Public Service Mutuals.
Describes an arrangement under which an employee acquires shares now but doesn't have to pay for them immediately. Also known as partly paid shares or deferred payment shares.
See Unapproved Options.
See Nil Paid Shares.
Shares which are subject to initial restrictions affecting their value e.g. non-voting, subject to forfeiture if the employee leaves within a specified period. These restrictions may fall away after that period has passed.
See SAYE Option Scheme.
A UK Revenue approved option scheme under which options may be granted to all employees of an independent company. Employees must agree to save a fixed monthly or weekly amount which at the end of the option period they may either use to exercise their options or simply withdraw. Also known as Sharesave and Save As You Earn options. For more information see our Guide to SAYE Options.
A UK Revenue approved scheme for providing employee shares, enabling employees to purchase shares (partnership shares) out of gross pay or receive free shares free of income tax and National Insurance. Shares must be offered to all employees. For more information see our Guide to the Share Incentive Plan (SIP).
See SAYE Option Scheme.
A business which wishes to use its profits and assets for public benefit, rather than creating rewards for investing shareholders, although some limited dividends are allowed.
Employee share options which (unlike EMI options, CSOP options and SAYE options) do not provide participants with income tax advantages; also known as non-approved options. For more information see our Guide to Unapproved (Non-approved) Share Options and Long Term Incentive Plans.
