https://www.myroyalmail.com/free-shares-offerFive year anniversary of SIP 2013 Free Shares award
15 October 2018 is the five year anniversary of the 2013 Share Incentive Plan (SIP) Free Shares award. This marks the first time eligible employees can sell any of their Free Shares tax-free.
Options for colleagues with SIP 2013 Free Shares
If you want to keep your shares, you don’t need to do anything. You can keep them in the SIP for as long as you are a Royal Mail employee. You will continue to benefit from being a Royal Mail shareholder, including receiving any dividends the Company chooses to pay.
From 15 October 2018, you can choose to sell your SIP 2013 Free Shares without paying any income tax or National Insurance Contributions (NICs). There are some important considerations to think about when deciding whether to sell your SIP 2013 Free Shares.
If you don’t have SIP 2013 Free Shares, but you have SIP 2014, 2015 or 2016 Free Shares, there are also some things you need to know if you are considering selling any of your Free Shares in the next few months.
Eligible employees will shortly receive a home mailing with important information on their options and factors to consider. Click below for soft copies. Please read it carefully before deciding what to do with your shares.Home mailing for those who hold SIP 2013 free sharesHome mailing for those who hold SIP 2014, 2015 & 2016 free shares onlyHome mailing for those who hold SIP 2016 & 2016 free shares onlyHow to sell your SIP 2013 Free Shares at the first available opportunity
If you want to sell your SIP 2013 Free Shares tax-free at the first available opportunity, you need to tell Equiniti, the Employee Share Scheme Administrator, in advance during the pre-election period.
This will run from 09:00 on Monday 24 September to 16:30 on Friday 12 October 2018. Call the automated Phone Pre-election Service on 0800 012 12 13. You cannot submit your instruction online during this period.
Everyone who takes part in the pre-election period will sell their shares at the same price. You will not know what that share price is until after the shares have been sold, as the shares will not be sold in real time. As a result, your shares could be sold at a price that is significantly lower than when you submitted your pre-election.
Once you have submitted your instruction, you will not be able to change your mind. SIP 2015 Free Shares – another important date
5 October 2018 is the third anniversary of the SIP 2015 Free Shares award. This marks the point at which you can sell your SIP 2015 Free Shares, but you will need to pay income tax and NICs.
If you hold any SIP 2013 or SIP 2014 Free Shares, there are important factors to be aware of when deciding whether you want to sell your SIP 2015 Free Shares, and when. These include the ‘first in, first out’ policy for selling Free Shares under the SIP rules, and the potential loss of tax benefits. These are covered in more detail in your home mailing.How the sale will be managed
It may be that the demand to sell SIP 2013 Free Shares from 15 October 2018 means that there are more requests to sell Royal Mail shares than can be processed in an orderly way using our usual process.
There is a range of ways that Equiniti and the brokers could sell the shares that employees request to sell in the pre-election period, and after 15 October 2018. This will also apply to any SIP 2014 or 2015 Free Shares that you request to sell during the period between 16:30 on Friday 12 October 2018 and real time dealing being reinstated.
Depending on market conditions, and in the event that there is a very high number of sell requests in the period up to and from 15 October 2018, the process used could result in employees’ shares being sold at a discount to the prevailing share price at the time. The discount could potentially range from five to 10 per cent. It could be more than that.
Or, if the volume of sell requests is lower, but is still above normal trading volumes, a different process may be used. This could mean that the price you receive for your shares is at a discount to the average share price on the stock market over the period of time during which the shares are sold. Equiniti will use the process they believe is in the best interests of employees selling Free Shares, and of other shareholders.