Number of employees participating in plans
The graph below shows that employee share plans are a popular part of the reward mix for companies of different sizes. At MUFG Corporate Markets, we offer the same high-quality access and functionality to clients with 2 to 50k+ employees.
Number of countries range
We have noticed that many companies are now providing plans to their international employees. More than half of the companies managed by MUFG Corporate Markets have employees located in two or more countries. This includes an option for foreign employees to join salary sacrifice plans.
Number of plans range
Most companies have a combination of an LTI plan and either an STI plan or a general employee share plan. It is common for companies with more than 500 employees to run multiple plans, with an average of 4 plans for companies in the ASX 200.
Communications
We observed that most companies use electronic methods for all employee communication. We handled over 1,000 email communications to 1.3 million+ email addresses. The communication included offers, allocations, vesting/lapses, and ESS reporting.
We also assisted companies with employee engagement sessions, creating appealing employee plan microsites and SMS communications.
Employee Share Plan Trusts
Over 70% of the companies have their plans administered via an Employee Share trust (EST).
The key benefits of an EST:
- ESTs presents capital management flexibility to companies. Companies can issue or purchase shares on market, and enjoy tax deductibility in respect of issuance of shares and no FBT on contributions if it meets the “sole purpose test.”
- ESTs assist with managing any insider trading issues, as the Trustee fronts the market and provides an arm’s length approach for the company to acquire and hold shares for its employees, either as new share issues or on market acquisitions. This also allows companies to meet Corporations Law requirements about dealing in your own shares.
- ESTs provide an efficient structure for giving effect to disposal restrictions/vesting conditions. They enable the enforcement of gross misconduct / bad leaver provisions simply through the re-acquisition of shares. They also provide a single vehicle for the administration of various plans under one trust vehicle.
- ESTs provide a mechanism to warehouse shares upfront, until they are needed to satisfy future equity incentive plan awards, enabling easy recycling of shares – when plan shares are forfeited.
MUFG Corporate Markets has a dedicated trustee, custody and related services ensuring the efficient management and safeguarding of your assets as well as strict compliance with legislation, listing rules and trust terms.
We hold an Australian Financial Services Licence and specialise in the establishment and management of a wide variety of trustee relationships including:
- Employee share plan management;
- Funds Under Management trusts; and
- Discretionary benefit trusts.