Free Shares and Matching Shares can be a powerful way of fostering staff retention, through the ability to forfeit them where employees leave as “bad leavers”.
Where awards of Free Shares are linked to achievement of a performance target, they can be a strong performance incentive.
Partnership Shares are purchased by employees with their own funds, so are often seen as the best way of aligning employees’ and other shareholders’ interests. Take up rates of Partnership Shares are likely to increase where Matching Shares are offered.
There is more information you’ll need to understand before deciding whether a SIP may be the right solution. This guide is intended to provide a brief overview only and we recommend more detailed guidance before making a decision.