UK-based Marsh & McLennan Companies employees who paid $43 for company shares at the beginning of October will still have to pay tax on the deal despite share prices buckling under the pressure of New York attorney general Eliot Spitzer.
Under the company's share save scheme, UK-employees are given the opportunity to save money in a specialised account to buy shares at a discount to the market place.
The big share sell-off takes place annually. This year's shares were sold at the beginning of October at around $43 each.
Since Spitzer announced his investigation into bid-rigging and contingent commissions in mid-October, the share price has tumbled from $46 to $25, closing last Friday at $27.60.
The sting in the tail, said reports, was that employees who took advantage of the scheme will now have to pay tax on the deal as it was deemed to be a taxable benefit.
