There were domestic and global flavours on offer at Summer Breakfast with IPSA, as a strong turnout was treated to a thoroughly engaging analysis of emerging trends in the share scheme sector by an excellent line-up of speakers.
Murray Tompsett, the Head of ProShare in the UK, was first to speak at the event at the Clayton Hotel in Ballsbridge.
He took delegates through the latest share scheme trends in the UK, including the UK’s government’s call for evidence to hear views about overhauling share incentives rules in order to increase share ownership among employees and boost business growth.
The two schemes up for review are Save As You Earn (SAYE) and the Share Incentive Plan (SIP), with the call for evidence including questions around whether the schemes are continuing to serve the purpose the were created to, and what barriers there are for access to them.
Murray also spoke about the importance of strong relationships with the government, cross-party with MPs, the civil service, and tax authorities.
Next up was Rosaleen Boyle, Incentives Senior Advisor at A&L Goodbody, who provided analysis of the global share scheme landscape. Long-term incentives are becoming more prevalent, with greatest coverage in the United States, where 99% of S&P 500 companies offer them.
Notable, however, is the increasing trend for companies to align the awarding equity incentives with their ESG objectives and a move towards more frequent vesting – thereby aligning incentives closer to salary.
What do the global trends mean for Ireland. Should Revenue be looking at allowing more flexibility in the approved schemes, with shorter cycles for share schemes such as APSS and SAYE, while rewarding longer shareholding with a reduced CGT rate? Greater tax efficiency can be also be achieved by removing or capping USC and PRSI on all share incentives.
The final speaker was Brian Purcell, Business Development Director EMEA for Global Shares, a JP Morgan company. He took a closer look at the different approaches to employee incentives taken by countries in the EU – Spain, Italy and the Benelux and Nordic regions – and North America.
What opportunities are on offer, what are the restrictions and challenges they present, and what trends can be identified within and across markets? The results are very interesting and can be viewed by downloading Brian’s presentation – and those of Murray and Rosaleen by clicking below.
Many thanks to all those who attended Summer Breakfast with IPSA, to event sponsor Global Shares, and also to the excellent staff at the Clayton Hotel Ballsbridge. Please don’t hesitate to contact IPSA if you’ve any questions related to the event or the broader share scheme and employee incentives sector in Ireland.