how many shares?

[Hawkey47]

Wandle, or anyone with knowledge,

Ive had a look at the prospectus and cant find the bit below.

Are you sure its on page 81 ??

"from page 81 of the Prospectus:
A further award of Employee Free shares may also be made on or after 6 April 2014 on a similar basis, to Eligible Employees still in Company or RMG employment

That date is significant. HM Revenue and Customs rules for Share Incentive Plans forbid awards of shares worth more than £3000 in any tax year. The 2014/15 tax year commences on 6 April 2014, so - if Royal Mail are serious about employees being rewarded for making the company more profitable - they could distribute some of the profit directly to us, by awarding a further set of Free Shares. I would expect, though, that any additional shares would then (also) have to be held for 5 years, if holders want to sell them without paying tax. RM would then say, presumably, that 'you asked us for a replacement for the ColleagueShares scheme. We listened. So, in future, you will receive a lower pay rise, but be compensated with additional free shares' ?
wandle

Posts: 331
Joined: 25 Feb 2011, 18:17
Gender: Male

[barrowc]

The Prospectus is in multiple parts and that text is from page 81 of the blue section. This is page 433 out of 447. The full text is:

6.5 Free Shares

Employee Free Shares awarded on or around the time of Admission will be awarded so that each full-time Eligible Employee will be allocated the same number of Employee Free Shares and each part-time Eligible Employee will be allocated a number of Employee Free Shares proportionate to the number of hours for which they were remunerated between 10 July and 13 October 2013, the latest practicable date prior to the expected date of Admission. A further award of Employee Free Shares may also be made on or after 6 April 2014 on a similar basis to Eligible Employees still in Company or RMG employment as set out in section 6.2 above.

The Board may on other occasions determine at its discretion whether or not Free Shares are awarded. The basis of allocation of Free Shares will be at the Board’s discretion but must be awarded on the basis of an objective formula based on employees’ earnings, length of service, number of hours worked or a fixed number or value, or at the Board’s discretion, an objective performance criteria measuring the objective success of the individual, team, division or business. However, the maximum value of Free Shares which a participant may receive in a tax year may not exceed £3,000 (or such other limit as may be permitted by the tax legislation governing the Plan from time to time). Free Shares may be subject to forfeiture in certain circumstances (see section 6.10 below).

The scary part about any further allocation is that one of the possible methods for deciding what you get could be: "or at the Board’s discretion, an objective performance criteria measuring the objective success of the individual, team, division or business" That almost sounds like performance related pay to me

[Hawkey47]

Thanks for reply. Does it mean if you are part time but worked full time hours between 10th july and 13th October you weill get the fulltimers allocation of shares. ?????

"The Prospectus is in multiple parts and that text is from page 81 of the blue section. This is page 433 out of 447. The full text is:

6.5 Free Shares

Employee Free Shares awarded on or around the time of Admission will be awarded so that each full-time Eligible Employee will be allocated the same number of Employee Free Shares and each part-time Eligible Employee will be allocated a number of Employee Free Shares proportionate to the number of hours for which they were remunerated between 10 July and 13 October 2013, the latest practicable date prior to the expected date of Admission[/color]. A further award of Employee Free Shares may also be made on or after 6 April 2014 on a similar basis to Eligible Employees still in Company or RMG employment as set out in section 6.2 above.

The Board may on other occasions determine at its discretion whether or not Free Shares are awarded. The basis of allocation of Free Shares will be at the Board’s discretion but must be awarded on the basis of an objective formula based on employees’ earnings, length of service, number of hours worked or a fixed number or value, or at the Board’s discretion, an objective performance criteria measuring the objective success of the individual, team, division or business. However, the maximum value of Free Shares which a participant may receive in a tax year may not exceed £3,000 (or such other limit as may be permitted by the tax legislation governing the Plan from time to time). Free Shares may be subject to forfeiture in certain circumstances (see section 6.10 below)."

[barrowc]

Yes - but any days on leave (annual/sick/etc) will only be counted at your basic hours

[briant_gumble]

Anybody know how many shares each employee will receive?

so going back to the original question - do we know exactly HOW MANY shares we are getting? based on 39 hours, can then work out pro-rata hours. sorry if the exact number has been mentioned in the thread somewhere.

I know they will probably go tits up within 5 years.

Nobody knows yet.
It has yet to be calculated.
They will do so based eligibility criteria, when they have the relevant information, which they don't know all of just yet.
They are supposed to be telling us, individually (by letter maybe) at some point after the 15th October I think.

So does anyone know the answer to this yet?

[UnhappyGremlin]

Anybody know how many shares each employee will receive?

so going back to the original question - do we know exactly HOW MANY shares we are getting? based on 39 hours, can then work out pro-rata hours. sorry if the exact number has been mentioned in the thread somewhere.

I know they will probably go tits up within 5 years.

Nobody knows yet.
It has yet to be calculated.
They will do so based eligibility criteria, when they have the relevant information, which they don't know all of just yet.
They are supposed to be telling us, individually (by letter maybe) at some point after the 15th October I think.

So does anyone know the answer to this yet?

No.
Every PT postie (except those who have only done their contracted hours - that is easy to work out) will just have to wait until RM contacts them with the info.

[chrisj]

For most part-timer the hours worked and paid for will be somewhat within the right ball park but some do have disputes over overtime payment and if you are not paid the correct OT by 15 October, that amount of hours will not be reflected in the number of shares... pity!

I think there is a postie on the Union forum in dispute with his manager over 100 hours Overtime non-payment...

The information will be collated soon but it also needs scrutiny to make sure it is as accurate as possible. If this was last year, I would be laughing but I am on basic hours- no bother

* I wonder whether they will count Scheduled Attendance hours???

[UnhappyGremlin]

For most part-timer the hours worked and paid for will be somewhat within the right ball park but some do have disputes over overtime payment and if you are not paid the correct OT by 15 October, that amount of hours will not be reflected in the number of shares... pity!

Makes you wonder if some DOM's did this on purpose to staff they dislike.

* I wonder whether they will count Scheduled Attendance hours???

I think so. OT is OT, can't see why not.

[cloherty1976]

Full time postie first allocation must be 613 shares

[midvillain]

do we have any rights in the say of company policy with these shares? like, shouldn't we be allowed to find out what the long term business strategy is?

[briant_gumble]

Full time postie first allocation must be 613 shares

Is it confirmed that everyone received this many then?

[fly-catchers]

Funny how before the privatisation RM were sending out leaflets & updates on the free shares almost every day. Now its gone through- there is no rush from them to give us the actual details & amounts! Still they have 3 years before it really matters!

[fishtank]

Full time postie first allocation must be 613 shares

Is it confirmed that everyone received this many then?

https://www.myroyalmail.com/2013-2014-SIP-allocations" onclick="window.open(this.href);return false;

Every eligible full-time employee has been given 613 Free Shares with an initial market value of£2,997.57 as their 2013 SIP allocation.
We intend to allocate the 112 surplus shares to individual full-time employees as soon as possible in the next tax year as a 2014 SIP allocation.
Eligible part-time employees will also receive their Free Shares in two allocations.

[briant_gumble]

How are the shares doing now?

[ratchet]

How are the shares doing now?

https://www.myroyalmail.com/2013-2014-SIP-allocations" onclick="window.open(this.href);return false;