Case study: Henderson offers both options
Asset management firm Henderson Global Investors offers both a share incentive plan (Sip) and sharesave scheme to its 750 UK staff.
Under sharesave, it offers the maximum 20% discount on the starting share price at maturity, while through its Sip, staff can obtain two-for-one matching on shares, as well as free shares. About 90% of staff take part in a scheme and many join both.
Jeremy Mindell, senior reward and tax manager, says: "It is unusual to offer both and with the full benefit, but we believe employee shareholders go that extra mile." Henderson also offers staff financial education on tax planning. For example, staff are encouraged to explore putting the shares they acquire on the maturity of either a sharesave or Sip into individual savings accounts (ISAs) and self-invested personal pensions.
"Sharesave has a degree of excitement at maturity, whereas Sips have a longer-term effect," says Mindell. "People can build up shares in a tax-efficient manner."
