Approved executive share option scheme
A type of share option ( www.practicallaw.com/A36577) scheme introduced in 1984. The directors ( www.practicallaw.com/A34876) can decide which executives benefit from the scheme. The executive is given the option over a fixed number of shares usually at the market price. The company will specify a date before which the option cannot be exercised. Exercise cannot be more than ten years after the grant of the option. Tax benefits can only be realised if the option is exercised no earlier than the third anniversary of the date of grant of the option.