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Howard and Byrne Solicitors, York - Criminal Defence Specialists

Second Free Share Allocation For Approximately 1200 Royal Mail Employees In York

Minster FM News Generic

11:38am 5th March 2014

York employees are getting a good look in on shares:

  • Approximately 1200 eligible employees in York are entitled to receive their SIP 2014 Free Share allocation in April this year.
  • Each eligible full-time employee is entitled to 112 Free Shares as their SIP 2014 allocation. This brings the total number of Free Shares allocated to each eligible full-time employee to 725.
  • Eligible part-time employees are entitled to a pro-rata number of Free Shares in the second allocation, based on their paid hours between 10 July 2013 and 13 October 2013.
  • The allocation date is expected to be 9 April 2014.
  • As part of the flotation of Royal Mail, eligible employees were given 10 per cent of shares in the Company, more than in any other UK privatisation for almost 30 years.
  • The overwhelming majority (more than 99%) of eligible employees participated in the October 2013 allocation of Free Shares. As shareholders, eligible employees are entitled to any dividends the Company might pay.
  • Free Shares have automatically been placed in a tax-advantaged, HM Revenue & Customs-approved Share Incentive Plan (SIP) for eligible employees.

SIP 2014 Free Shares

Each eligible full-time Royal Mail employee is entitled to receive their SIP 2014 allocation of 112 Free Shares in April this year.

Each eligible full-time employee is entitled to 725 Free Shares. However, the initial market value of Free Shares for each full-time eligible employee, based on the closing mid-price on 15 October 2013 (Royal Mail’s flotation date), was £3,545.25. This exceeded the HMRC annual limit of Free Shares that could be allocated to an individual employee in any tax year, which at the time of flotation was £3,000.

Eligible full-time employees were therefore allocated 613 Free Shares, worth £2,997.57 as their 2013 SIP allocation. The remaining 112 Free Shares will be awarded in April 2014. The allocation date is expected to be 9 April 2014. Eligible part-time employees are entitled to a pro-rata number of Free Shares in the second allocation, based on their paid hours between 10 July 2013 and 13 October 2013.

 

Free Shares Offer

As part of the flotation of Royal Mail, eligible employees were given 10 per cent of shares in the Company, more than in any other UK privatisation for almost 30 years. It is the largest free allocation of shares of any major UK privatisation.

 

The overwhelming majority (more than 99%) of eligible employees participated in the October 2013 allocation of Free Shares.

Free Shares have automatically been placed in a tax-advantaged, HM Revenue & Customs-approved Share Incentive Plan (SIP) for eligible employees. Employees must hold each allocation of Free Shares in the SIP for at least three years before they can be sold or transferred out of the SIP (except in certain circumstances).

 

As shareholders, eligible employees are entitled to any dividends the company might pay.

 

Moya Greene, Chief Executive, Royal Mail plc, said: “Our people are the heart of our business. Their stake in our company provides greater alignment between the interests of employees and shareholders. I am delighted that our colleagues will have the opportunity to benefit from our potential future success.”

 

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