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Definition

Most listed companies use their shares to motivate their employees through an employee share option scheme. This usually involves the employee getting options to buy a certain quantity of shares (depending on seniority, length of service etc.) at a price which is well below the current market value of the shares. The existence of an employee share option scheme normally means that the number of shares in issue increases each year, which has an impact on per share statistics like NAV or EPS.

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