ifs ProShare, a not for profit membership organisation concerned with employee share ownership, released the results of their annual SIP (Share Incentive Plan) and SAYE (Save As You Earn) earlier this week.
The 2006 survey covered over 95% of UK companies operating an SAYE plan and more than 50% of companies offering a SIP.
Over 2.5 million employees are participating in a SAYE scheme in the UK and the 2006 survey results show that the average monthly saving per employee was £61.18.
As with the last survey in 2004, most employees (approximately 70%) opt to save into a 3-year savings plan.
The survey also revealed that over 80% of companies operating a SAYE scheme gave their employees the full 20% discount on the purchase of their shares.
Fiona Downes summed up the SAYE survey results as "...generally good news." Stating: "The overall picture of SAYE schemes is a stable one."
Fiona Downes said: "The ifs ProShare survey results confirm that employers are not using SIP instead of SAYE – it's an additional share plan, not a substitute."
The 2006 SIP survey results indicate that each employee participating in a SIP makes an average monthly purchase of company shares ranging from £58 to £88 depending on the company.
22% of companies match the shares their employees buy on a 2 for 1 basis but the largest share matching is on a 1 for 1 or "Buy one Get One Free" basis (34% of companies).
Fiona Downes concluded: "UK companies operating a SIP continue to be generous in matching the shares purchased by their employees and we sincerely hope this trend continues, benefiting millions of employees across the UK."
Both the SIP and SAYE surveys highlighted the apparently neutral effect of 2005 accounting changes to employee share plans. As Fiona Downes, Head of Employee Share Ownership at ifs ProShare, said:
"The new accounting standard IFRS2, which had a big impact on executive remuneration, appears to have made little difference to all employee share schemes. With only 0.6% of SIP companies and 0.5% of SAYE companies making amendments to their schemes as a result of the new measures."
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