Worth Knowing
Here you’ll find a brief glossary as well as information about insiders, malus and clawback and tax equalisation.
For more details about our share plans head over to the Shares Portal. Here you will find out everything you need to know and more. Topics such as the plan rules, eligibility, taxation, international assignments and what happens if you leave BAT are all covered.
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Glossary |
Conditional share
An award that gives the holder an opportunity to automatically receive BAT share(s), subject to the achievement of certain condition(s). The condition could be time based (i.e. restricted stock under the RSP) or performance based (i.e. performance share under the PSP).
Dividend Election
You can choose how to receive dividends on vested shares held in your EQ+ Share Plan (SPA) account, either as cash payment or reinvested into shares. FAQs can be accessed here.
Exercise
Act of converting option(s) into share(s) before the shares are transferred to the holder. Conditional shares do not need to be exercised.
Exercise period
A 7 year period following vest in which the holder can exercise their option, before the option expires and lapses.
Grant
Means the date on which an award is granted.
Option
An award that gives the holder a right to acquire BAT share(s) during a specified exercise period, following the vesting of the award.
Option price
The cost to you to buy the underlying share, this can be zero.
Vest
Means the date on which awards subject to a condition (i.e. time and/or performance) is deemed to be satisfied, as such that the underlying conditional shares are due to be transferred to the holder, or underlying options becomes exercisable by the holder.
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Insiders |
Any sale of shares will be subject to the British American Tobacco Code for Share Dealing. If you think you fall into any of the following categories you must seek clearance before selling your shares:
• Restricted Person
• Person on a Confidential Project List
• Project Insider
• Person Discharging Managerial Responsibilities
• Permanent Insider.
For further information please contact the Company Secretary on +44 (0)20 7845 1924.
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Malus & Clawback |
Awards made under the PSP, RSP and DSBS are subject to malus and claw-back provisions. Broadly speaking, malus allows a reduction or lapse of cash or share award before vesting/payment, whilst clawback allow post the recovery of shares or cash post vesting/payment.
A claw-back can be applied in the unlikely event if, within two years after an Award vests, it is discovered that there has been a misrepresentation of performance or an error in calculation which resulted in the vesting level being overstated.
A claw-back may also be applied where misconduct is discovered which justifies, or would have justified, dismissal (which would have resulted in no shares being delivered).
Where a claw-back is applied, any cash or share award or payment due to you may be reduced by the value of the excess shares received or you may be required to repay the excess shares (or their equivalent value).
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Tax Equalisation |
If you have been on international assignment during the life of the award then your award will be subject to our Tax Equalisation policy. This means we’ll sell enough shares to cover the amount of income tax you would have paid had you remained in your home country throughout the life of the award.
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Useful contacts |
Who can I contact for more information?
For queries relating to:
Plan policy and eligibility – your HRBP
Your EquatePlus account (help with access or transactions) – Computershare
by phone: +44 (0)37 0703 0112
Share Dealing Code – Company Secretary’s department
by phone: +44 (0)20 7845 1924
Tax equalisation policy – Global Mobility