9.4.1 A crucial issue

The earliest stages of the planning of a share scheme will need to include the planning of the treatment of leavers; this is often the single most important and contentious part of any share plan.

There is little point in allowing a leaver to hold shares in a company, but there will always be situations where an individual leaver may have contributed to a company and its success and will be justifiably upset if his share scheme does not yield value to him. It must also be borne in mind that the incentive effect of the scheme will be diminished if employees perceive unfairness or bias against them in this element of scheme design.

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