Stephen Hester - Waiving or drowning?

Stephen Hester - Waiving or drowning?

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I can't help wondering if Stephen Hester was already "beneficially entitled" to his employment related securities before he waived his bonus - if he was, of course, section 421B (2) (a) of ITEPA 2003 means he would still be taxable on them.

I am sure HMRC will be looking into this...

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By taxhound
30th Jan 2012 10:33

Whatever the answer

I feel an employment tribunal and claim for constructive dismissal and emotional distress coming on....

 

I think given that the package was negotiated when Labour was in power, they have a ****** cheek getting all self righteous about it now.

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By thisistibi
30th Jan 2012 11:48

A good question

It's a good question, I guess there is no way to know if he was beneficially entitled to it before it was awarded.  I don't think that it how long term share incentives normally work, so he might be ok.

I still feel it strange that you could say at the start of a financial year "you will get a bonus of x provided conditions y & z are met".  And then when conditions y & z are met at the end of the financial year, you say "oh, that's unfair, you should give it up"...... seems too late to me.

 

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By Steve Holloway
30th Jan 2012 12:46

All I know ...

is that the various MD's of other UK based banks have had a cruddy weekend. My heart bleeds of course!

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By blok
30th Jan 2012 13:44

.

I did think of that as well.  I suppose he should have taken the shares and then gifted them to a charity of his choice.  Other than tax reasons, it also appears a better use of the money.

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By Richard Willis
31st Jan 2012 08:57

I can't help thinking

that he could have got away with half!

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