ESOP update
Employee share Ownership Plan (ESOP) participants have recently been advised that the Departments of Finance and Communications, Energy and Natural Resources has now given its written consent to the proposed amendments to the internal market.
The ESOP is a Revenue Commissioner approved employee share scheme, established in December 2001, with shares passing to participants on a two-step basis - notional allocation and then appropriation. Once appropriated, participants are able to offer shares for sale or, where applicable, to buy additional shares on an internal market to be operated for the ESOP Trustees.
At present, shares have been notionally allocated to participants and will be appropriated as soon as the internal market mechanism is in place.The ESOP Trustees identified a number of potential pitfalls with the operation of the market, as set out in the existing rules and developed a package of amendments that they believe will give sellers an opportunity to achieve reasonable value for their shares. However, before any amendments can be made, the following approvals are required:
- Agreement from Trustee Board
- Consent of ESB
- Consent of Group of Unions
- Consent of Revenue Commissioners
- Consent of Minister for Communications, Energy and Natural Resources and Minister of Finance
- Approval from a ballot of participants - October 2008
Having now received Departmental consent, the ESOP Trustee will, this month, be holding a series of information sessions around the country for participants. Each session will consist of a presentation on the proposed amendments, with time for questions, giving participants the opportunity to meet with members of the Trustee Board. The information sessions will run over a four-week period and participants will then be asked to vote on the proposed amendments.
The ESOP roadshow will be visiting the following locations:
- Wednesday, September 17th Dublin (Central)
- Thursday, September 18th Dublin (South)
- Friday, September 19th Dublin (North)
- Monday, September 22nd Waterford
- Tuesday, September 23rd Cork
- Wednesday, September 24th Tralee
- Thursday September 25th Limerick & Ennis
- Monday, October 6th Galway
- Tuesday, October 7th Sligo
- Wednesday October 8th Athlone
- Thursday, October 9th Portlaoise
- Friday, October 10th Dundalk
Full details of roadshow venues and timings will be set out in the information packs to be issued to ESOP participants in early September.
The ESOP Trustee would encourage all participants to attend their local information session.
Further information on the proposed amendments and the information roadshow will be issued to all ESOP participants in early September. If you do not receive your copy, please contact either John or Fiona in the ESOP Office at esop@esb.ie or on (01) 702 7970.
