Long-Term Incentive Plan 

A discretionary scheme

The company provides a cash contribution to a trust for the purchase of shares on behalf of employees who receive dividends payable on the shares. The shares are transferred from the trust to the employees at a later stage conditional on meeting appropriate performance requirements and/or staying with the company. This scheme usually operates as a high level executive scheme. Careful structuring is required to introduce tax-efficiencies and avoid tax-inefficiencies.