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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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.
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.
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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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.