Employee Share Options Service (ESOS)
Fees & Charges
| Financing | |
|---|---|
| Financing Interest | 7% p.a. |
| Processing Fee – SBL with financing or financing only | 0.1% on each loan drawn down/option(s) exercised (min S$20, max S$150) (subject to GST) |
| Processing Fee – Self-financing | $10 per option (s) exercised. (subject to GST) |
| Cancellation Fee for ESOS | S$100 if employee withdraws, or exercises invalid options after application has been processed. (subject to GST) |
| Transfer Fee (for depositing of share collateral) |
|
| Quarterly Sub-Account Maintenance Fee | $15.00. Waiver is on the condition of 1 trade done in that quarter. (subject to GST) |
| Securities Borrowing & Immediate Sell | |
| SBL Borrowing Fee | 10 % p.a. |
| SBL Admin Fee | S$20.00 (subject to GST) |
| SBL Contract Settlement Fee | S$0.50 (subject to GST) |
| Sub-to-sub transfer charge | S$10 (subject to GST) per counter per lot, subject to a maximum of S$100.00 (subject to GST) per counter. |
| Sale of shares | Standard brokerage and fees apply. |
| Miscellaneous | |
| CDP Processing Fee | $10 (subject to GST) per option exercise. |
| Dividend Charges (applicable for shares held in PFPL Share Financing Account) | <=S$100 – $1.00 (subject to GST) >S$100 – 1% of Net Dividend, max. S$50 (subject to GST) *In addition, handling charges are also imposed by foreign custodians for foreign shares |
How share options financing works
When employees choose to initiate an “immediate sell with best effort” option and at the same time exercise their share options, they are not required to put in any collateral or cash.
Example 1: Full Financing and Immediate Sell with Best Effort
An Employee exercised 10,000 shares options at an exercise price of $1.50 per share and sold them on the same day at a market price of $2.50 per share.
| Description | 100% Financing with “Immediate Sell” |
|---|---|
| Exercise cost (incl. CDP fee on exercise) | $15,010.70 |
| ESOS processing fee | $20.00 |
| Total ESOS Loan | $15,030.70 |
| ESOS financing interest (7% p.a.)** | $57.65 |
| Sub-to-sub transfer charges | $107.00 |
| Total ESOS exercise costs | $15,195.35 |
| Gross Sales proceeds | $25,000 |
| Less Sales costs: | |
| (1) Brokerage rate (min S$40 or 0.5%) | $125.00 |
| (2) Clearing fee | $10.00 |
| (3) SGX access fee | $1.88 |
| GST on (1)+(2)+(3) | $9.58 |
| (4) SBL borrowing fee (10% p.a.)** | $136.99 |
| (5) SBL admin fee | $20.00 |
| (6) SBL contract settlement fee | $0.50 |
| GST on (4)+(5)+(6) | $11.02 |
| $24,685.03 | |
| Estimated net profit due to client | $9,489.68 |
Example 2: Self-finance and Immediate Sell with Best Effort
An Employee exercised 10,000 shares options at an exercise price of $1.50 per share and sold them on the same day at a market price of $2.50 per share.
| Description | 100% Financing with “Immediate Sell” |
|---|---|
| Exercise cost (incl. CDP fee on exercise) | $15,010.70 |
| ESOS processing fee | $10.00 |
| Sub-to-sub transfer charges | $107.00 |
| Total ESOS exercise costs payable | $15,127.70 |
| Gross Sales proceeds | $25,000 |
| Less Sales costs: | |
| (1) Brokerage rate (min S$40 or 0.5%) | $125.00 |
| (2) Clearing fee | $10.00 |
| (3) SGX access fee | $1.88 |
| GST on (1)+(2)+(3) | $9.58 |
| (4) SBL borrowing fee (10% p.a.)** | $136.99 |
| (5) SBL admin fee | $20.00 |
| (6) SBL contract settlement fee | $0.50 |
| GST on (4)+(5)+(6) | $11.02 |
| $24,685.03 | |
| Estimated net profit due to client | $9,557.33 |
Enquiry
Fees & Charges
| Financing | |
|---|---|
| Financing Interest | 7% p.a. |
| Processing Fee – SBL with financing or financing only | 0.1% on each loan drawn down/option(s) exercised (min S$20, max S$150) (subject to GST) |
| Processing Fee – Self-financing | $10 per option (s) exercised. (subject to GST) |
| Cancellation Fee for ESOS | S$100 if employee withdraws, or exercises invalid options after application has been processed. (subject to GST) |
| Transfer Fee (for depositing of share collateral) |
|
| Quarterly Sub-Account Maintenance Fee | $15.00. Waiver is on the condition of 1 trade done in that quarter. (subject to GST) |
| Securities Borrowing & Immediate Sell | |
| SBL Borrowing Fee | 10 % p.a. |
| SBL Admin Fee | S$20.00 (subject to GST) |
| SBL Contract Settlement Fee | S$0.50 (subject to GST) |
| Sub-to-sub transfer charge | S$10 (subject to GST) per counter per lot, subject to a maximum of S$100.00 (subject to GST) per counter. |
| Sale of shares | Standard brokerage and fees apply. |
| Miscellaneous | |
| CDP Processing Fee | $10 (subject to GST) per option exercise. |
| Dividend Charges (applicable for shares held in PFPL Share Financing Account) | <=S$100 – $1.00 (subject to GST) >S$100 – 1% of Net Dividend, max. S$50 (subject to GST) *In addition, handling charges are also imposed by foreign custodians for foreign shares |
