Embed Size (px)
Citation preview
Lynette Jacobs, Partner, Pinsent MasonsJane Li, Company Secretary UK and Ireland, DHL
Hitting the Road to Share in our Success: DHL’s Story
Introduction – who we are and our roles• Jane Li – Company Secretary UK & Ireland. Project Manager and
Cross Divisional Sponsor for the roll out of the SIP scheme to 45,000 UK employees. Influencer and peacemaker.
• Lynette Jacobs – share plans and incentives partner at Pinsent Masons. Advised on the drafting, structure and implementation of the DHL UK all-employee stock purchase plan (UK Share Incentive Plan (SIP)) to enable tax-advantaged treatment for participants
DHL – some facts
•World’s 5th Largest Employer with 500,000 employees•Operates in 220 countries worldwide
Brand as recognisable as Coca-Cola
DHL UK (divisions)
• Portfolio of Divisions with distinct personalities• Through acquisitions complicated ownership structures for legal entities
Why a SIP
•What the Company wanted to achieve• Top 3 requested employee benefit• Employee engagement and retention
• Cost neutral as possible to the business• Tax efficient for the employee
•No share dilution • Flexibility for future
enhancements
What is a SIP
• Four types of award may be made under a SIP:oPartnership Shares – savings contract with payments made from pre-tax salary – maximum £1,800 per tax year (£1,500 before 6 April 2014)
oMatching Shares – with partnership shares (up to 2:1)oFree Shares – up to £3,600 in a tax year (£3,000 before 6 April 2014)
oDividend Shares – reinvestment of dividends paid on SIP shares
What is a SIP (continued)• Shares held in a UK “trust”• Trust extends to employees of that company and its subsidiaries who meet the eligibility requirements (3 SIPsand associated trusts required for the DHL plan)• Tax treatment - if hold all shares for required period (3-5 years):• no income tax/NICs• gains sheltered from CGT whilst shares in the trust
• Leaver and corporate transaction provisions
Operational matters - payroll structures• Weekly, Lunar and Monthly Payrolls• Volume of employees per payroll• External providers of payroll processing• Centralised HR Services - process mapping of every aspect
of the SIP
Operational matters - IT
• Interfaces for each different IT system• Secure data exchange pathways and encryption• Each division has unique server and IT support• Corporate approval of global payroll elements and costings to be built in SAP, negotiation of maintenance windows• Internal and external end to end testing for all parties
Branding
• Strong brand of DHL regardless of division•Opportunity to own a part of DHL and receive direct reward for contribution to its success•Not a scam – trustworthy• Financial education partnering with DHL to enter
in to investment opportunity
Communications
•Diverse employee population•Differing levels of sophistication• Production line employees/people working outside of the business (implants or offsite) / Shift patterns• Cost• Access to IT
Communications delivery
• Cascading plan• Pre-awareness campaign – internal magazine articles, teaser communications• Invitation/launch stage – CEO announcements, email or letter invitations, HR and manager briefing packs• Virtual and printed materials• Several points of access to information•Dedicated helpline number
Communications delivery (continued)• Getting the message across:oVideo to work in a high noise environmentoWebinars and live Q&A feedsoCEO launch message/board presentationoUnion and staff association presentationso Posters (suite of 6 – head office, forklift truck, warehouse)oManager training/team briefingsoDrop in centresoWeekly wrap up
Share Portal
How it went
•DGF 16%•DSC 8%•GBS 13%on initial launch and first purchase February 2017
Expect continued growth as message continues to filter through
Lessons learned
•What went wellBranding, brochure, tailored communications Level of engagement and commitment from every member of the implementation team
•What we will improve on /do differentlyOnline user experience, allow more time for IT systems build and testing
Questions
Thank You Thank you for attending GEO’s 18th
Annual Conference in Rome. We hope you enjoyed this session. • If you require CPE Credit, don’t forget to Sign Out• Two ways to give us your feedbackon this sessiono Mobile appo Paper surveys available at the door
