GEO INSIGHTS

Elon Musk is asking a US court to dismiss an SEC lawsuit accusing him of saving $150 million by disclosing his Twitter stake late in 2022, in violation of rules requiring disclosure within 10 days of surpassing 5% ownership. His lawyers argue the case is baseless, saying he corrected the filing quickly, caused no harm to investors, and is being unfairly targeted due to his public criticism of the regulator. The SEC maintains Musk’s delay caused economic harm and is seeking unusually large monetary penalties compared to similar cases.

Denmark has proposed draft legislation to expand tax relief for employee share schemes, removing the 50% salary cap and extending eligibility to companies up to 10 years old with as many as 150 employees and turnover up to DKK200m. The bill also suspends the carbon tax on fishing from 2026–28, phasing it in from 2029, alongside new VAT exemptions for education under age 30 and adjustments to corporate tax collection rules. If approved, the measures would take effect on January 1, 2026, with consultation open until September 25, 2025.

The Centre on Mutual and Co-Owned Business at Kellogg College has awarded Professors Andrew Pendleton and Andrew Robinson the inaugural Nigel Mason Award for Employee Ownership Research, recognising their paper on employee ownership trusts as a model of impactful scholarship. The award, launched in memory of employee ownership advocate Nigel Mason, highlights outstanding contributions that advance understanding and practice in the field. Other shortlisted researchers, Professor Niels Mygind and Martin Stucki, were also commended for their work on employee ownership models and entrepreneurship.

Employee stock options often look more valuable on paper than in reality, with taxes, timing, and execution risk significantly reducing headline gains. Even a £40,000 paper gain might shrink to £25,000 or less once tax (the first haircut), time delays (the second haircut), and exit uncertainty (the third haircut) are factored in. The key is to evaluate the tax wrapper (EMI being best, CSOP a backup, unapproved the weakest), the timing of payout, and the real likelihood of a successful exit.

The UK’s new Private Intermittent Securities and Capital Exchange System (PISCES), launched in 2025 under a five-year regulatory sandbox, creates a regulated platform for intermittent trading of private company shares, bridging the gap between private and public markets. It provides liquidity for employees and early investors, offers pension funds and institutions access to private equity in line with regulatory goals, and allows companies to control trading parameters while retaining capital structure flexibility. While PISCES enhances transparency and capital formation, it does not guarantee continuous liquidity or raise new capital, making due diligence and governance alignment critical for both investors and private firms.