Price earnings multiple meaning

Company share option plans (CSOPs) These are statutory, tax‑advantaged, discretionary share option arrangements that may run on an all‑employee basis, though they are more often applied selectively. Where the statutory rules are satisfied, favourable tax treatment may follow. The CSOP framework is prescriptive, laying down multiple conditions to be met both at grant and at exercise, covering matters relating to: the company issuing the options the employees to whom options are granted, and the shares placed under option Detailed conditions apply at each key stage of an option’s lifecycle. They govern eligibility of issuer, recipients and underlying shares alike. This Practice Note concentrates on the CSOP eligibility criteria that must be met by the company and by the shares to be put under option. Those criteria are explained with reference to the income tax relief contained in sections 521–526 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). A company should ensure it is satisfied that...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

Enterprise management incentives (EMI) scheme The enterprise management incentives (EMI) scheme is a highly adaptable and tax-efficient arrangement aimed at small and medium-sized companies. The EMI framework is prescriptive and requires multiple conditions to be met when options are granted, covering: the company issuing the options the employees to whom the options are granted the shares placed under option the options themselves This Practice Note centres on the requirements that the options must satisfy to qualify as EMI options, assuming all other eligibility criteria are in place. These conditions are explained with reference to the income tax relief set out in sections 527–541 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). For details of the other conditions, see Practice Notes: EMI—qualifying companies EMI—trading activities EMI—what makes an employee eligible? For an overview of the tax reliefs available to qualifying EMI options, see Practice Notes: Enterprise...