employee share scheme


Also found in: Acronyms.

employee share scheme

a scheme for sharing company profits with employees with the object of conferring on them a participation in the company in the hope of engendering greater commitment from them. Schemes operate either by distributing shares already paid up by the company either directly to the employees themselves or to trustees for them or by conferring on employees options to acquire shares on favourable terms. Revenue law provides special rules in respect of authorized schemes.
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