Company Share Ownership Plan ("CSOP")

CSOPs were introduced in 1984 to encourage employees to own shares in their employing company or, if a group of companies, in the parent company. Awards under a CSOP are commonly used as a means of rewarding, incentivising or retaining employees or for a combination of these objectives. The CSOP can be operated on an 'all employee' basis but is usually used on a selective basis.

It is common for the options to be awarded with certain conditions which must be achieved before the option vests and the employee is entitled to exercise the option. These objectives can be aligned to the business objectives and can set goals specific to each employee; ensuring the employee focuses on the key business drivers.