From The Number 1 Recruiter to Work For Conference hosted by Colleague Software and Recruitment International.

1. An Introduction to Share Options
By Gary Watson
June 2014

2. Investigo
Do they work?
YES
...AND NO
Share option schemes

3. Investigo
Why would you implement a Share Scheme?
• TO AID RECRUITMENT
• TO IMPROVE RETENTION
• TO MOTIVATE KEY EMPLOYEES
• COST EFFECTIVE
• TAX EFFICIENT

4. Investigo
What are the benefits to your employees?
• THEY ACQUIRE A STAKE IN THE BUSINESS
• OPPORTUNITY TO ACCUMULATE WEALTH
• RELATIVELY RISK FREE

5. Investigo
3 categories of share scheme
1. PURCHASE AND AWARD OF SHARES
2. AWARD OF OPTIONS
3. PHANTOM SHARE AWARDS

6. Investigo
What is an Approved Share Scheme?
• EMI
• CSOP
• SAYE
• SIP
A SCHEME FOR WHICH CERTAIN TAX BENEFITS ARE AVAILABLE
TO EMPLOYEES AND EMPLOYERS

7. Investigo
What is an Unapproved Share Scheme?
EVERYTHING ELSE!

8. Investigo
Enterprise Management Incentive
• AIMED AT SMALLER QUALIFYING TRADING
COMPANIES
• OPTION EXERCISE PRICE CAN BE DISCOUNTED
TO THE MARKET VALUE OF THE SHARES AT DATE
OF GRANT
• ON THE GRANT THERE IS NO INCOME TAX OR
NIC
• LESS THAN 250 EMPLOYEES
• GROSS ASSETS OF £30M OR LESS
• AT SALE EMPLOYEES QUALIFY FOR
ENTREPRENEUR’S RELIEF AT 10%

9. Investigo
Company Share Option Plans
• USED WHERE EMI OPTIONS CANNOT BE
GRANTED
• GIVES YOU AN OPTION TO BUY UP TO £30,000
WORTH OF SHARES AT A FIXED PRICE
• OPTIONS CANNOT BE EXERCISABLE WITHIN 3 YEARS
OF GRANT DATE
• ON THE GRANT THERE IS NO INCOME TAX OR NIC
• GAINS ARE SUBJECT TO CGT

10. Investigo
Save As You Earn
• MUST BE AVAILABLE TO ALL EMPLOYEES WHO’VE
BEEN WITH THE COMPANY FOR A CERTAIN TIME
• THE PRICE IS FIXED AT THE START
• YOU CAN SAVE UP TO £500 A MONTH OUT OF
YOUR TAKE HOME PAY
• AT THE END OF THE SAVINGS CONTRACT (3 OR 5
YEARS) YOU CAN USE THE SAVINGS TO BUY THE
SHARES
• THE INTEREST AND ANY BONUS YOU RECEIVE AT
THE END IS TAX FREE
• GAINS ARE SUBJECT TO CGT UNLESS YOU PUT THE
SHARES INTO AN ISA OR PENSION AS SOON AS YOU
BUY THEM

11. Investigo
Share Incentive Plan
4 DIFFERENT WAYS YOU CAN RECEIVE SHARES
UNDER SIP:
1. FREE SHARES
2. PARTNERSHIP SHARES
3. MATCHING SHARES
4. DIVIDEND SHARES
• AFTER 5 YEARS THERE IS NO INCOME TAX OR NIC
ON THEIR VALUE WHEN YOU ACQUIRE THEM
• GAINS ARE SUBJECT TO CGT

12. Investigo
When do Share Schemes Not Work?
• IF SHARE SCHEMES ARE TO ATTRACT, RETAIN AND MOTIVATE THEN THERE ARE 4 THINGS
THAT HAVE TO BE RIGHT:
• QUALIFYING CRITERIA
• TIMELINE
• TRANSPARENCY
• THE QUANTUM

13. Change
Management Guildford Tax Property Treasury
Launch of
Hong Kong office SAP
The Birth of
Investigo London
3RD August 2003
Accounting
& Finance
St Albans Strategy Reading Milton Keynes Procurement &
Supply Chain
HR Launch of
Sydney office
2014
2006 2008 2010 2012
Time line of Investigo 2003 – 2014

14. GDP 2003-2013

15. Investigo
£65 Million
Forecasted for
2013/2014
Investigo Turnover 2003–2013
£53.1
£47.0
£42.4
£32.0
£26.0
£19.2
£11.5
£6.5
£3.3
£0.6
12/1311/1210/1109/1008-0907-0806-0705-0604-0503-04
Million

16. Investigo
Darren Burns
Director – Banking & Financial Services
“Investigo is a genuine half way house between a
large scale recruitment business and starting on
your own.
Unlike other ‘Equity’ schemes and empty promises
around the market, the EMI scheme at Investigo is
very real and very transparent. The scheme is
aligned from Day 1. The financial incentive is very
attractive and was a huge factor when joining
Investigo. This is a huge reward for circa 5 years of
hard work.
It’s not for everyone, so you should be confident in
building a brand and a profitable business. If you
back yourself then Investigo have proven to share
wealth amongst the group. I interviewed at 9
companies and Investigo came up trumps!”

17. Investigo
Stuart Bonner
Director – Property
“Being a qualified accountant before getting into
recruitment, understanding company valuations
was something I’d trained in. I guess this made me
more cynical than most when it came to offers of
share schemes worth nothing. The absolute total
transparency of the deal at Investigo has been key
for me to believe and trust in it’s potential
outcome”

18. Investigo
Ben Cowan
Director - Change Solutions
“Apart from the culture and people, a major
attraction for me to join Investigo was the
transparent and straight forward LTIP.
The scheme relates directly to the performance of
the business I run, not on elements outside of my
control, which I found particularly appealing.
The EMI scheme demonstrates Investigo’s
commitment to me, and creates loyalty in return,
enabling us to focus 100% on delivering on
Investigo’s vision.
The EMI scheme, structured as it is, puts my “pay
out” destiny in my own hands – something I find
extremely motivating.”

19. Investigo
Terry Dawson
Associate Director – SAP
“Leaving my last company and choosing to join
Investigo was the biggest decision of my life, one
of the reasons I chose to join was the LTIP/ EMI
scheme that was presented to me.
Unlike other share option schemes that seemed
confusing and less than straight forward, the
Investigo scheme was simple. It will reward me
based on the results of my own performance and
that of my division, so in simple terms I know
exactly how much profit I need to generate for the
company in a set period of time in order to
achieve my financial goals.
This clarity and straight forward approach helps
me to focus on my goals and is hugely motivating
for me. Investigo has literally given me the
opportunity to change my life within a period of 3-
4 years!”

20. 3rd December 2013
MBO

21. Investigo
Any Questions?
If you would like copies of this presentation please email:
Gary.Watson@Investigo.co.uk