Partnership and matching plan

[Duran]

Hi Guys.

Just looked on my ESP Portal. I'm paying the max in at £23.07 per week . Says I have 27 share partnership, only 2 shares matching. Last updated 28th September 2018. Shouldn't that be 5 matching ? 1 for every 5 I buy.

[wacko74]

It's a maximum of only 2 free ones a month

[Duran]

Thanks for fast reply. So at the current share price. Anything over £10.00 per week aint gonna benefit from the free share with every five we buy. Should have read the small print. I may reduce so that I buy 10 shares per month. When share price goes up increase payment.


Thanks again.

[wacko74]

I suppose it's just swings n roundabouts... at the current low price the 2 free shares don't feel like such a great deal, but there again, the current low price means you're hoovering up more shares for your money and there is hopefully an upside to the SP in the long term.

For now I'm sticking with the maximum £23 option.

[paul2011]

I wonder how long will this last for?
I mean how many shares are available for us all to buy?

[afcdibby]

I wonder how long will this last for?
I mean how many shares are available for us all to buy?

That's the million dollar question.

[RobertT]

I wonder how long will this last for?
I mean how many shares are available for us all to buy?

There were 1 billion shares issued when RM was privatised and the workforce were given a total of 12% over 4 batches / 3 years.
Some of those have been sold, while others have been surrendered by 'bad leavers'.

There was also the SAYE scheme.

I don't know if there's any official figures, but at a guess I would have thought we now own a maximum of 10% of the company between us? But quite possibly less.

If that is anywhere correct, then there are another 900,000,000 shares in circulation, held mainly by fund managers and the general public. Many millions of those are traded on the stock market each day.
So buying them isn't an issue!

I would say the biggest question here, is how long are RM going to be giving out free shares to those who partake in the P&M scheme! And where are they coming from?

Are they just being recycled from those surrendered by bad leavers and the scheme will close when they run out; or

Are RM actually buying them for us on the open market.

I suspect it's the former!

[scribbler]

I only pay a small amount each week but I'm not seeing any shares listed for the Partnership and Matching plan on my ESP Portal. Are they supposed to be listed under SAYE??

[RobertT]

I only pay a small amount each week but I'm not seeing any shares listed for the Partnership and Matching plan on my ESP Portal. Are they supposed to be listed under SAYE??

I'm not doing P&M, but I think they should be in your SIP along with your free shares.

[Duran]

I only pay a small amount each week but I'm not seeing any shares listed for the Partnership and Matching plan on my ESP Portal. Are they supposed to be listed under SAYE??

open up your esp portal. Click on my investments. Then click view for SIP. Your partnership and matching shares will be listed separately there.

[worktotime]

Thanks for fast reply. So at the current share price. Anything over £10.00 per week aint gonna benefit from the free share with every five we buy. Should have read the small print. I may reduce so that I buy 10 shares per month. When share price goes up increase payment.


Thanks again.

yes its a max of 2 shares per month , I pay £12.50 a week so £50 a month , and last month I got 14 + 2 free shares , so even if the shares go up to £5 I would still get 2 free shares ,

[loyalsnail]

Remember, every share you buy is costing you 68% (or less) of market rate so shares bought now would need to be worth less than circa £2.33 at sale to make a loss (ignoring dividends and sales fees).

[posted]

I wonder how long will this last for?
I mean how many shares are available for us all to buy?

There were 1 billion shares issued when RM was privatised and the workforce were given a total of 12% over 4 batches / 3 years.
Some of those have been sold, while others have been surrendered by 'bad leavers'.

There was also the SAYE scheme.

I don't know if there's any official figures, but at a guess I would have thought we now own a maximum of 10% of the company between us? But quite possibly less.

If that is anywhere correct, then there are another 900,000,000 shares in circulation, held mainly by fund managers and the general public. Many millions of those are traded on the stock market each day.
So buying them isn't an issue!

I would say the biggest question here, is how long are RM going to be giving out free shares to those who partake in the P&M scheme! And where are they coming from?

Are they just being recycled from those surrendered by bad leavers and the scheme will close when they run out; or

Are RM actually buying them for us on the open market.

I suspect it's the former!

Many companies own their own shares held in treasury, so it gives them flexibility

1. to sell their own shares to raise capital rather than issue new ones
   to issue the shares to directors/employees as part of a benefits package
   to vote for motions on behalf of the company itself

Here's a statement from the 2017-18 annual report

Employee Beneft Trust (EBT)
As at 25 March 2018, a total of 513,230
(2016-17 9,582,175) shares were held by the
EBT on behalf of the Company

I suspect the free (matching) shares are coming from here. The ones we actually buy are either being bought on open market or we could be buying them from the same EBT pot, which raises a bit of capital for RMG whilst also helping employees build a stake in the business. Either way, the idea being that with employees having a direct stake, they will align company strategic goals as far as shareholders are concerned.. increasing profit and therefore increasing dividend and market capitalisation.

[RobertT]

Many companies own their own shares held in treasury, so it gives them flexibility

1. to sell their own shares to raise capital rather than issue new ones
   to issue the shares to directors/employees as part of a benefits package
   to vote for motions on behalf of the company itself

Here's a statement from the 2017-18 annual report

Employee Beneft Trust (EBT)
As at 25 March 2018, a total of 513,230
(2016-17 9,582,175) shares were held by the
EBT on behalf of the Company

I suspect the free (matching) shares are coming from here. The ones we actually buy are either being bought on open market or we could be buying them from the same EBT pot, which raises a bit of capital for RMG whilst also helping employees build a stake in the business.

A good point, although those shares surrendered by bad leavers would presumably go into the same pot? I'm not sure where else they could go!

Either way, the idea being that with employees having a direct stake, they will align company strategic goals as far as shareholders are concerned.. increasing profit and therefore increasing dividend and market capitalisation.

That's the theory, but how many employees actually see it like that? Most will just see it as a way of making a bit of money.

[cloherty1976]

I wonder what price we paid for shares yesterday as the price rose in early trading and then fell back substantially?