| Mark Saliba
The Salary Sacrifice Matching Plan (SSMP) is a common share plan used by listed companies in Australia to reward employees. Key features of the share plan are described below.
Under the Plan:
As with any employee equity plan, there are certain obligations and conditions under the plan rules. With a SSMP, these are commonly:
Vesting – employees must remain employed and hold purchased shares at the vesting date to allow for the matching rights to convert into shares.
Dividends and voting privileges - full dividend and voting privileges apply to the purchased shares.
Leavers - For a good leaver (employee leaving due to reasonable circumstances), matching rights are exercised into shares as at their termination date. With bad leavers (employee exiting as a result of misconduct or breach of employment contract), matching rights are forfeited. In both instances the employee retains their purchased shares as post tax dollars were used.
It is important with any employee equity plan to obtain professional tax advice. Broadly, tax points to note under a SSMP include:
BoardRoom’s market-leading Employee Equity Plan team has vast experience managing SSMPs for multiple listed companies. If you would like to learn more about how this share plan works and how we can help, please do not hesitate to contact us.
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