Company Share Option Plan (CSOP)

Company Share Option Plan (CSOP): a share scheme that enjoys favourable tax treatment in the UK. Under CSOP, an employer may offer employees options to buy up to £30,000 worth of shares at a fixed price within a fixed period of time. There are complex statutory regulations controlling which companies may implement a CSOP, with the following conditions having to be met: (i) shares placed under option must be listed on a recognised stock exchange or free from control by another company; (ii) shares placed under option must be ordinary share capital and (iii) options may be issued by the employer or the parent company. See also EMI for a comparison.