Equiniti’s Employee Share Plans Survey 2025 highlights a significant shift in how UK-listed companies are approaching dilution limits.

• 57 per cent of companies still have plan rules with dilution limits below 10 per cent, but many are now aligning with the Investment Association’s 10 per cent over 10 years threshold.
• Investors are proving supportive: AGM votes to remove the five per cent cap have gained approval rates as high as 96–100 per cent across FTSE 100 companies.
• The message is that with clear consultation and communication, companies can build shareholder confidence while securing the flexibility they need to deliver effective reward strategies

A second major theme from the Equiniti survey is the removal of the 10-year renewal requirement for all-employee plans such as SAYE and SIP.

• 75 per cent of respondents indicated they will review their plan rules with advisers or propose new rules to remove the 10-year renewal clause.
• This simplifies administration and avoids the risk of delays caused by shareholder approval timings.
• Companies welcome the flexibility, but the report stresses the need for ongoing periodic reviews to ensure plans remain effective

Equiniti is to be commended for commissioning this research, which provides robust evidence of market practice and valuable insights for boards and plan managers.

Download Equiniti's Employee Share Plans Survey Report 2025