Our website uses cookies to improve your user experience. If you continue browsing, we assume that you consent to our use of cookies. More information can be found in our Cookies and Privacy Policy. 

X
Skip to content
Employee Benefits
  • News
  • Covid-19
  • Tax & Legal
  • Benefits
  • Events
  • Suppliers
  • Email sign up
Search Login / Register Primary Menu
Close
or Register
news Logistics Share schemes Share schemes Tax and legislation

Royal Mail staff must wait for full shares allocation

By Jennifer Paterson 1st November 2013 12:00 am 6th April 2017 3:39 pm

Royal Mail employees will not receive their full free share allocation until April 2014.

Using calculations based on a maximum share price offer of 330p per share, the 150,000 eligible full-time employees were due to immediately receive around 725 free shares each, while part-time staff would receive a smaller number of shares on a pro-rata basis.

Vince Cable, business secretary, confirmed that Royal Mail employees would be given 10% of the organisation’s shares after its flotation on the London Stock Exchange on 11 October.

The surge in the share price once normal market trading began, from 330p to an average 540p per share within a few days, meant that the 10% share offer had to be amended.

This is because employee participants in a tax-approved share incentive plan (Sip), the share scheme being used by the postal workers as a home for free shares, are only allowed a maximum investment of £3,000 worth of free shares per year.

Thus, the surge in the Royal Mail share price put the value of the free shares above the annual limit by around £1,000.

The organisation will provide employee with 613 shares, instead of the allocated 725, in the current tax year, and will hand out the remaining shares after April 2014.

A spokesperson from the Royal Mail, said: “This means that 150,000 postal workers will have to wait until 7 April before they can receive into their individual Sip accounts the delayed balance of their free share allocation – the ‘missing’ 112 shares each.

“Nevertheless, postal employees will hardly be complaining about the much-enhanced value of their free share allocations.” 

news

Top 10 most read stories this week

8th November 2013 1:30 am 3rd November 2015 5:11 pm
news

Reward director roles are evolving rapidly

8th November 2013 12:03 pm 3rd November 2015 5:11 pm
news Financial education Pensions

41% have not discussed retirement plans with partners

1st November 2013 12:00 am 6th April 2017 4:47 pm
news

Hospitals trust pays overtime bonuses

7th November 2013 11:55 am 3rd November 2015 5:11 pm
news Pensions

West Cornwall Pasty Company launches master trust

5th November 2013 11:30 am 3rd November 2015 5:11 pm
Sign up for the leading independent source of news and expert analysis delivered straight to your inbox. Sign up
Latest ArticlesComments (1)
news Share schemes

HLM Architects transitions to employee ownership trust

5th March 2021 11:25 am 5th March 2021 4:16 pm
news Pay strategy

Newham Council becomes living wage employer

5th March 2021 9:59 am 5th March 2021 9:59 am
news Financial wellbeing

Employers not prioritising financial wellbeing

5th March 2021 9:42 am 5th March 2021 9:42 am
news Employee engagement

EXCLUSIVE: Danone to discuss how to make inclusion and belonging matter

5th March 2021 9:00 am 4th March 2021 12:13 pm
  • paul wells 7th November 2013 at 10:47 am

    nothing mentioned above about not allowed to sell them for 3 years so pretty pointless about what the current price is it doesnt really make any difference. its what there worth in 3 years time

    Reply Link
  • Cancel reply

    Threaded commenting powered by interconnect/it code.

Explore

  • Email sign up
  • News
  • Benefits
  • Analysis
  • Supplier network
  • Events
  • Jobs
  • Video
  • Buyer’s guide
  • Case studies
  • Opinion
  • Industry sectors
    • Building & Construction
    • Charity / Voluntary
    • Financial Services
    • Healthcare
    • Industry
    • Leisure
    • Logistics
    • Manufacturing
    • Media
    • Pharmaceuticals
    • Professional Services
    • Public Sector
    • Retail
    • Technology / telecommunications
    • Transportation
    • Utilities
  • Digital editions
  • Contact us
  • Twitter
  • LinkedIn
  • Contact us
  • Cookies
  • Privacy
  • Website Terms and Conditions

Copyright @ 2020 DVV Media HR Group Ltd

built by Bournemouth Digital

DVV Media HR Group Limited. Registered in England and Wales no. 6776955.

Registered office 1st Floor Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB