Saye 3 June 2009 For Linklaters


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This was a presentation on our SAYE plan that I gave at a Linklaters ICSA ESP alumni meeting on 3 June 2009.

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Saye 3 June 2009 For Linklaters

  1. 1. UK & International SAYE Launches Gabbi Stopp, Pearson plc
  2. 2. Agenda <ul><li>Pearson plc </li></ul><ul><li>SAYE Launches </li></ul><ul><ul><li>Pearson WorldWide Save For Shares Plan </li></ul></ul><ul><ul><li>Timescales </li></ul></ul><ul><ul><li>Key things to watch out for </li></ul></ul><ul><ul><li>Post-launch activities </li></ul></ul><ul><li>Any questions? </li></ul>
  3. 3. Who we are, what we do <ul><li>Three core businesses: </li></ul><ul><ul><li>The Financial Times </li></ul></ul><ul><ul><li>Penguin Books </li></ul></ul><ul><ul><li>Pearson Education. </li></ul></ul><ul><li>Three core values: </li></ul><ul><ul><li>brave </li></ul></ul><ul><ul><li>imaginative </li></ul></ul><ul><ul><li>decent. </li></ul></ul>
  4. 4. WorldWide Save For Shares <ul><li>Approved UK, French & Irish share options </li></ul><ul><li>Unapproved international share options </li></ul><ul><li>Unapproved international stock appreciation rights </li></ul><ul><li>3, 4 (France only), 5 and 7 (UK only) year terms </li></ul><ul><li>No qualifying eligibility period </li></ul><ul><li>Offered to 15,000 employees in 60+ countries annually </li></ul><ul><li>Network of 120+ local coordinators </li></ul><ul><li>Website & materials translated into 17 languages </li></ul>
  5. 6. Launch timescales <ul><li>December Instruct legal & tax due diligence providers </li></ul><ul><li>2008 Review website & agree communications strategy </li></ul><ul><li>Brief designers & web developers </li></ul><ul><li>January Finalise timetable and circulate to stakeholders </li></ul><ul><li>2009 Planning meeting with providers </li></ul><ul><li>February Exchange rates confirmed, monthly savings limits set </li></ul><ul><li>Deadline for completion of legal & tax due diligence </li></ul><ul><li>Ask coordinators for eligibility data </li></ul><ul><li>Send all text to translators </li></ul><ul><li>March Sign off all translated communications materials </li></ul><ul><li>Final results announcement </li></ul><ul><li>Ensure coordinators intranet </li></ul><ul><li>complete </li></ul>
  6. 7. Launch timescales <ul><li>March Eligibility data upload complete </li></ul><ul><li>Check web content & functionality </li></ul><ul><li>UK coordinator workshops </li></ul><ul><li>Circulate teaser posters </li></ul><ul><li>1st all-employee email </li></ul><ul><li>Local legal filings </li></ul><ul><li>April Employee presentations ‘lunch & learn’ </li></ul><ul><li>UK participant invitation letters despatched </li></ul><ul><li>International participants emails sent by coordinators </li></ul><ul><li>Invitation date (within 42 days of results) </li></ul><ul><li>Circulate launch posters </li></ul><ul><li>2nd all-employee email – option price & website open for applications </li></ul><ul><li>3rd all-employee email – </li></ul><ul><li>reminder of closing date </li></ul>
  7. 9. Launch timescales <ul><li>May 4 th and final all-employee email – confirm invitation closed & when to expect option certificates </li></ul><ul><li>Take-up figures confirmed </li></ul><ul><li>French option price calculated & emailed to coordinators </li></ul><ul><li>Date of grant (within 30 days of invitation date) </li></ul><ul><li>£250 check via payroll & administrators </li></ul><ul><li>June Deduction files sent to payrolls & coordinators </li></ul><ul><li>UK participant option certificates & letters despatched </li></ul><ul><li>SO & SAR confirmation letters sent to coordinators </li></ul><ul><li>July First deduction from pay </li></ul><ul><li>August 2009 savings contract starts </li></ul>
  8. 10. Key things to watch out for! <ul><li>Tax & legal due diligence – allow more time than you think you’ll need </li></ul><ul><li>Translations – as above, plus crucial to sense-check final versions with native speakers </li></ul><ul><li>Cultural differences – find a way to make these work in favour of the plan </li></ul><ul><li>Coordinators – build relationships & make them feel loved! </li></ul><ul><li>Local & historic issues – address these prior to launch, take mitigating action if possible </li></ul>
  9. 11. Post-launch activities <ul><li>Take-up reporting – important in order to gauge success of plan & report back to stakeholders </li></ul><ul><li>Employee feedback – are your plan communications ‘pressing the right buttons’? </li></ul><ul><li>Review the launch process & discuss with your providers - what went well? what didn’t? why? </li></ul><ul><li>Thank your coordinators – keep them engaged & lines of communication open </li></ul>
  10. 12. … any questions? <ul><li>? </li></ul>
  11. 13. Sharesave Maturity Robin Kerner National Grid plc
  12. 14. Contents <ul><li>Planning meeting </li></ul><ul><li>Timetable of events </li></ul><ul><li>Documentation </li></ul><ul><li>Application methods </li></ul><ul><li>Share allotment/ transfer </li></ul>
  13. 15. Sharesave III 3 year option maturity <ul><li>Option granted 30 December 2004 </li></ul><ul><li>Contract start date 1 April 2005 </li></ul><ul><li>Last deduction from pay February 2008 </li></ul><ul><li>Option price 383p </li></ul><ul><li>Outstanding option holders = 2,349 </li></ul><ul><li>Shares required 1.73 million </li></ul>
  14. 16. Planning Meeting <ul><li>Who should be invited ? </li></ul><ul><li>Plan Administrators </li></ul><ul><li>Savings Carrier </li></ul><ul><li>ISA Provider </li></ul><ul><li>Registrars </li></ul><ul><li>What do we want to get out of the meeting? </li></ul><ul><li>Key timetable dates </li></ul><ul><li>Methods of application </li></ul><ul><li>Co-operation between all parties </li></ul>
  15. 17. Timetable-key dates <ul><li>13/11/2007 Planning Meeting </li></ul><ul><li>08/02/2008 Maturity Documentation signed off </li></ul><ul><li>26/02 Payroll/data check with Administrators </li></ul><ul><li>29/02 Documentation posted </li></ul><ul><li>Co Sec report for March Board </li></ul><ul><li>18/03 Cut off for 1 st allotment (1/4/08) </li></ul><ul><li>25/03 Cut off for 2 nd allotment (7/4/08) </li></ul><ul><li>01/04 1 st Allotment </li></ul><ul><li>07/04 2 nd Allotment </li></ul>
  16. 18. Key dates- continued <ul><li>08/08 Final email/ all subscriber note (reminder) </li></ul><ul><li>15/09 list outstanding participants still not exercised to NG from Administrator </li></ul><ul><li>30/09 Final exercise date </li></ul>
  17. 19. Maturity Pack <ul><li>Contents </li></ul><ul><li>Covering letter </li></ul><ul><li>Maturity statement </li></ul><ul><li>Maturity instruction form </li></ul><ul><li>Explanatory booklet </li></ul><ul><li>Reply paid envelope </li></ul>
  18. 20. Application Methods <ul><li>Paper application by post </li></ul><ul><li>On-line application (unless shares being transferred into an ISA). </li></ul><ul><li>Telephone </li></ul>
  19. 21. Paper application
  20. 22. On-line application
  21. 23. Maturity Statement
  22. 24. Maturity Instruction Form
  23. 25. Sales on Exercise <ul><li>We want to encourage long term holding by employees rather than sale on exercise </li></ul><ul><li>We give details of a panel of “low cost” share dealing services </li></ul><ul><li>Participants can make their own arrangements </li></ul>
  24. 26. Advance Notice <ul><li>Copies of documentation to all HR contacts </li></ul><ul><li>Email/ all subscriber note </li></ul>
  25. 27. 1 st All Subscriber Note <ul><li>Circulated on behalf of Global HR </li></ul><ul><li>REMINDER – Sharesave III (3 Year Scheme) Maturity 1 April 2008 </li></ul><ul><li>This email is for employees who participated in SHARESAVE III (3 Year Scheme) granted in December 2004, at 383p per share. </li></ul><ul><li>The option granted to you under the above Scheme is due to mature on 1 April 2008 and will be exercisable for a period of 6 months (1 April 2008 to 30 September 2008). ExcellerateHRO (formerly Towers Perrin) will be writing to you regarding the maturity of this option within the first week of March 2008. </li></ul><ul><li>If you HAVE NOT received your maturity pack from ExcellerateHRO by Monday 10 March, please contact the Sharesave Helpline on 0870 160 0119. </li></ul>
  26. 28. Allotment/Transfer Cycle <ul><li>1/4/08 1 st allotment on maturity date. </li></ul><ul><li>7/4/08 2 nd allotment date </li></ul><ul><li>Then subject to number of exercise requests being received revert to normal allotment cycle. </li></ul>
  27. 29. Final Reminders <ul><li>Final reminder all subscriber note </li></ul><ul><li>Reminder letter from Administrator 1 month prior to final exercise date </li></ul><ul><li>Final list of outstanding participants from Administrator – 2 weeks prior to final exercise date </li></ul><ul><li>Participants contacted by telephone/ HR contact </li></ul>
  28. 30. Final All Subscriber Note <ul><li>CIRCULATED ON BEHALF OF GLOBAL HR </li></ul><ul><li>FINAL REMINDER – Sharesave III (3 Year Scheme) Maturity 1 April 2008. </li></ul><ul><li>This email is for employees who participated in SHARESAVE III (3 Year Scheme) and have NOT exercised their option to purchase National Grid shares. </li></ul><ul><li>A letter and exercise documentation was sent to you by ExcellerateHRO during the first week of March 2008. If you have not received this information, or have mislaid it, please contact the Sharesave Helpline number on 0870 160 0119. </li></ul><ul><li>If you wish to exercise your option, your exercise documentation must be received by ExcellerateHRO by no later than 30 September 2008 which is the final date of exercise. </li></ul><ul><li>If your exercise documentation is not received by this date, your option will lapse and you will not be permitted to purchase National Grid shares. Instead you will receive a cheque which represents your savings plus any interest earned. </li></ul>
  29. 31. Summary <ul><li>Planning meeting </li></ul><ul><li>Timetable of events </li></ul><ul><li>Documentation </li></ul><ul><li>Application methods </li></ul><ul><li>Share allotment/ transfer </li></ul><ul><li>ANY QUESTIONS? </li></ul>