The plan in operation is The Diageo plc 2017 Irish Share Ownership Plan (also known as Irish Profitshare) which is a Revenue approved employee share plan, which allows you, as an employee, to be rewarded for your contribution to Diageo's success by giving you ownership of Diageo shares.
This plan gives employees of certain Diageo businesses within Ireland, who have completed 30 or more consecutive days service in the Diageo financial year and are chargeable to Irish Income Tax, a choice of taking either shares or cash through Profitshare. It allows you to use all or part of your annual performance bonus, linked together with salary foregone, to acquire ordinary shares in Diageo plc.
The value of the shares you may receive will be based on a percentage of your salary, with the percentage announced following Diageo plc's annual results. Under Irish Revenue rules, the value of any shares awarded cannot exceed €12,700 per tax year.
Shares allocated under the plan are held in Trust on your behalf for three years and will automatically transfer to you on the release date, which is the third anniversary of the award.
You will receive dividends on any Profitshare that you hold on the dividend record date. Dividends are normally paid twice a year, in April and October.
Salary Foregone, is a Revenue approved employee share plan linked to the Profitshare plan which allows you to forego an element of your pre-tax salary over a period of 6 months (January to June) to purchase additional Diageo shares.
You will receive an invitation to join the plan in November each year and will be advised of the maximum amount of salary you can forego. The amount contributed must not exceed 7.5% of eligible pay (however the actual percentage will not exceed the Profitshare percentage in the same year).
The amount contributed must not exceed the value of shares acquired under the Profitshare plan in any tax year and the total amount, together with the value of shares through Profitshare must not exceed the overall limit of €12,700.
You will receive dividends on any Salary Foregone shares that you hold on the dividend record date. Dividends are normally paid twice a year, in April and October.