Employees in the SAYE 2014 Scheme have the option to convert their savings into Royal Mail shares at a discounted price of 360p. Those who wish to exercise this option could benefit financially by £1,121 (while the share price is around 550p). After the 31st May 2018, the option to acquire shares at a discounted rate will lapse and the savings will be repaid.
Royal Mail estimate there are currently 4,538 Royal Mail employees who have not yet exercised their option to buy shares and a further 2,836 who may have mistakenly opted to have their savings returned to them (rather than convert their savings into shares).
While Royal Mail have issued reminder letters to the affected employees (Attachments 1 and 2), they have asked the CWU to issue advice to those members affected.
- For those who wish to buy shares at 360p, they need to complete and return the instruction form (Attachment 3) by the 31st May 2018 to avoid missing out financially.
- For those members whose SAYE savings have already been returned to them and who wish to buy shares, they must complete and return the instruction form by no later than the 16th May 2018.
- For those SAYE members who do not wish to convert their savings into shares, no further action is required.
Colleagues are reminded that the operation of the share scheme is a matter for Royal Mail and Equiniti. Any enquiries relating to SAYE and shares should be directed in the first instance to the following number: 0800 012 1213.
What individuals choose to do with their SAYE savings is a matter for them but we wanted those employees affected to be fully aware of the potential financial benefits of using their SAYE savings to purchase Royal Mail shares at a discount price.