Employee Share Options Service (ESOS)

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
Employees can also opt for immediate sell, while self-financing the option exercise.


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
**ESOS financing and SBL borrowing for 20 days. Actual duration depends on processing time taken.

Enquiry

    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
    Employees can also opt for immediate sell, while self-financing the option exercise.


    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
    **ESOS financing and SBL borrowing for 20 days. Actual duration depends on processing time taken.

    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)
      1. S$10 (subject to GST) per counter from CDP to PFPL.
      2. S$20 (subject to GST) per counter for transfer out of Phillip.
      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
      * Charges subject to change. Please contact your trading representative for the latest charge schedule.

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