Monday, 19 October 2015
Staff to benefit from increased value under Share Incentive Plan
19th October 2015: TEn Insurance Services Ltd, the network for independent commercial brokers, is delighted to announce that it has taken another step down the road towards broader share ownership with the introduction of a Shareholder Incentive Plan (SIP), as a vehicle for its staff to individually purchase shares in the company.
This move follows on from the transfer of 69.5% of the firm’s equity during November 2014 in favour of an Employee Ownership Trust (EOT) known as TENT. An EOT is a form of collective ownership whereby shares are held in trust for the benefit of all staff.
A SIP allows staff members to make a monthly investment from a salary of up to £1,800 per tax year, before deductions for Income Tax and National Insurance. The share value is recalculated every year and, after a period of at least three years, those shares bought through the SIP may be sold back to the Trust without incurring Capital Gains Tax.
Comments TEn director James Sharp; “Last year, TEn’s move toward employee ownership up to nearly 70% of all shares, guaranteed - once and for all - that TEn was totally serious about the concept of succession and that we were in the business of being a network for independently minded insurance brokers for the long term.
We have already seen a significant increase in staff engagement with all facets of the business since last year and the opportunity to hold a personal – as well as a collective – stake in future of TEn can only benefit the company, its broker members and our people.
Consequently, I am equally pleased and proud to report that virtually 100% of eligible1 staff have already signed-up to buy shares every month.”
Shares to feed the requirements of the SIP, initially expected to equate to circa 1.5% of the total equity per year, will be made available either from the personal stakes of older directors, or from TENT, should demand for SIP shares ever out-strip the annual supply from individuals.