LTIP case study: Rolling out an Employee Stock Purchase Plan in Singapore

Client challenge

Rolling out an ESPP

The client wanted to roll out an ESPP for their Singapore employees and we had previously assisted them with:

• Reviewing their senior executive equity plan to provide cross border tax advice for their expats
• Assistance with reporting obligations arising from their senior executive equity plan.
• Assisted them roll out a Company Share Option Plan in the UK.

The Grant Thornton solution

We assisted the client in three stages:

1. Design. We worked with local legal counsel to draft a plan to the US company’s satisfaction and outlining the employer and employee implications of setting up such a plan.
2. Drafting/Implementation: We worked with the lawyer and the client to ensure that the plan was drafted and approved by the US board. We subsequently drafted and coordinated appropriate communications for distribution to Singapore employees along with hosting a webinar workshop to roll out the plan and answer any questions.
3. Tax advice and compliance: We provided tax advice on the plan and provide ongoing tax reporting obligations arising from the Singapore ESPP.

The Outcome

The Group was able to roll out an ESPP in Singapore for their local employees. The Singapore take up of the ESPP was higher than in the equivalent plans in the US and the UK.