Companies review employee share schemes

With the Government changes to the employee share scheme causing uproar among business and industry groups, many companies are now looking to review their options, with Macquarie Bank planning to go back to investors for another capital raising.

Under the changes, those earning more than $60,000 a year will be taxed up front on share and option packages.

The Government has come under intense pressure from business and unions to soften the changes with many companies now placing their own employee share schemes on hold as they assess the implications of the changes.

A corporate governance analyst, Dean Paatsch, has said that most people only took part in the schemes because of the tax benefits, and with the changes many are beginning to question whether it is now worth it.

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