Paragraph 8 Meaning of “long term incentive scheme”F1

England, Wales and Scotland

(1)

In this Schedule “long term incentive scheme” means an agreement or arrangement—

(a)

under which money or other assets may become receivable by a director, and

(b)

which includes one or more qualifying conditions with respect to service or performance which cannot be fulfilled within a single financial year.

(2)

For this purpose the following must be disregarded—

(a)

bonuses the amount of which falls to be determined by reference to service or performance within a single financial year,

(b)

compensation for loss of office, payments for breach of contract and other termination payments, and

(c)

retirement benefits.

Annotations

F1: Sch. 4A inserted (7.8.2018 with application in accordance with reg. 1(3) of the amending S.I.) by The Companies (Miscellaneous Reporting) Regulations 2018 (S.I. 2018/860), reg. 1(3), Sch.