Share benefits are a great way for individuals to build up capital, and schemes like this share incentive plan aim to align individual success with the success of the business.
As with all shares, irrespective of the underlying strength of the business, holding a high proportion in any one share, or any single type of investment for that matter, is a high risk investment strategy. Those working for companies with share save and share incentive share plans could, over a number of years, build up a significant holding in the shares of that company and so should consider diversifying this investment across a balance of shares and other investments.
Financial education is a great way to help employees to understand the value of share plans and help them to make the most of this valuable benefit.
Admiral Group has given each of it 8,000 employees £3,600-worth of free shares through its employee share scheme. The motor insurance firm rewarded its staff with the free shares after achieving a record profit before tax of £377 million in 2015, 6% higher than in 2014. The employee share scheme has been in place at Admiral Group since 2004.