Schedule 2 share incentive plan (SIP): Types of award: Partnership shares: Minimum deduction of partnership share money
A Schedule 2 SIP may (but need not) provide that no less than a specified minimum amount of partnership share money will be deducted on any occasion. If there is a minimum deduction it must be:
- no more than £10,
- the same for all participants irrespective of their pay interval, and
- specified in the Schedule 2 SIP (paragraph 47).
The last requirement should normally be met by specifying the amount in the partnership shares agreement. The plan rules may then be flexible and permit the company to set any minimum deduction not exceeding £10.