A new bipartisan proposal, the SHARE Act, would give public companies a 3% corporate tax rate discount if they distribute at least 5% of their stock to the lowest-paid 80% of employees. Sponsors project the plan could transfer nearly $4 trillion in stock value to about 40 million middle-class Americans, helping narrow wealth inequality while boosting employee ownership and loyalty. Companies could offset share dilution through the tax break, and stock awards would be tax-deductible for businesses and tax-free for employees.

The Takeover Panel and FCA have introduced major updates across UK corporate and capital markets regulation, including consultations on dual class share structures, new practice statements, and reforms to the prospectus and public offers regime. Key changes include higher thresholds for further issuances without a prospectus, a new regulated public offer platform for unlisted securities, reduced IPO prospectus review periods, and stronger protections for forward-looking statements. Alongside this, the government is progressing digitisation of shareholding, tightening reporting requirements, reforming national security notifications, and requiring Companies House filings via software from 2027.

Virtual Stock Option Plans (VSOPs) reward employees financially based on company success without granting actual shares and often include vesting periods to encourage long-term commitment. In a landmark March 2025 ruling, the German Federal Labor Court (BAG) found that forfeiting or accelerating the expiration of already vested options due to employee resignation unfairly disadvantages employees and violates German law. This decision mandates companies to revise VSOP/ESOP agreements to ensure vested rights are protected and that bad leaver clauses fairly balance employer and employee interests.

Foreign private issuers (FPIs), which accounted for over half of U.S. IPOs in 2024, benefit from lighter executive compensation disclosure requirements than U.S. domestic issuers, though these rules vary based on their home country’s regulations. To qualify as an FPI, a company must be non-U.S. incorporated and meet ownership or business-contact criteria, but that status is reviewed annually and may change. Despite more lenient requirements, FPIs should design executive compensation policies that align with shareholder expectations, anticipate potential regulatory changes by the SEC, and ensure compliance across all jurisdictions.

If your organisation has issued shares or securities to employees, you may be required to report this to the Australian Taxation Office (ATO) under Employee Share Scheme (ESS) rules, with key 2025 deadlines being 14 July for employee statements and 14 August for the ATO report. Accurate records are essential to determine if a taxing event has occurred, as ESS interests may be taxed either upfront or deferred, and detailed information must be reported for both employees and the ATO. Moore Australia offers support in navigating ESS compliance, including plan reviews, valuations, and submissions, especially in light of recent legislative changes like the removal of cessation of employment as a taxing point.

Budget 2025 allocates $75 million over four years to tax changes aimed at boosting foreign investment in infrastructure and helping startups attract and retain talent. This includes $10 million to allow deferral of tax on employee share schemes until a liquidity event, easing cashflow issues for employees. Additionally, $65 million is set aside for potential reforms to thin capitalisation rules to encourage debt-financed foreign investment, especially in infrastructure.

Employee Share Scheme (ESS) reporting in Australia requires employers to meet strict deadlines, accurately prepare statements, and manage complex tax rules, especially for globally mobile employees. Key obligations include issuing ESS statements to employees by 14 July and lodging reports with the ATO by 14 August, while understanding taxing points and legislative changes is crucial for compliance. Services like Automic can help simplify the process by managing data, ensuring accuracy, and handling submissions to the ATO, reducing the risk of penalties and easing the administrative burden on employers.