Executive Share Options Plan

A hassle-free approach to financing exercises

The way forward in financing the exercise of share options is in place through Barclays Stockbrokers Executive Share Option Schemes Finance and Dealing Service. Instead of a "cashless exercise" under which a company gives employees a number of shares equal to the difference between their value and the exercise price (less any tax liabilities), Barclays Stockbrokers offers an interest-free loan which is repaid by employees immediately selling sufficient of the shares held under option.

This approach to covering the cost of Executives acquiring shares does not constitute a "restriction" on the shares, as would be the case for "cashless exercises" in some situations and is therefore not objectionable to HMRC in respect of approved schemes . The proceeds from the sale of shares exercised under the options would also be used to fund employees' tax liabilities and associated dealing costs. The balance of proceeds is then paid over to the employees' designated bank accounts.

The principles are straightforward. Barclays Stockbrokers service efficiently deals with funding the exercise price and associated tax liabilities, as well as limiting employee exposure to market risk. Nevertheless, you will require a bespoke arrangement for your requirements.

Please note this service is available to UK Quoted Companies only.