Staff at Network Data Holdings have finally been able to reap the rewards of a Share Incentive Plan (Sip) that was offered to them in 2000, following the company’s float at the end of September 2006.
The company initially launched a phantom share scheme six years ago after hatching long-term plans to float. Adreanna Ayre, head of human resources and training at Network Data Holdings, said: "We couldn’t use it because we hadn’t floated but we created an internal [artificial] market. If you keep the shares in a plan for five years, then sell them straight from the plan, there are no tax implications at all, but if you sell them earlier there are."
Staff have now been allocated free shares depending on seniority and length of service, and can choose to buy extra shares on top of these.
All employees with more than twelve months’ service are eligible to participate in the scheme.
The company originally intended to float in July this year, however, was advised to postpone this due to poor stock market performance. At the time of going to press, the mortgage service provider’s share price stood at 56.50p.