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<p>Share awards can provide an important recruitment incentive and help align employee
interests with those of the company. UK company law permits the allotment of shares
for employee share schemes without applying the pre-emption provisions that otherwise
require newly issued shares to be offered to existing shareholders first to avoid
equity dilution. The Financial Conduct Authority’s Listing Rules require shareholder
approval of employee share schemes while allowing companies in unusual circumstances
to allot shares to retain or recruit a director without such prior approval.</p>
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