Whether planned or unplanned, retirement prior to age 65 may present an income gap until the qualifying age to receive pensions and Social Security. While stock administrators cannot offer financial planning advice, they need to know how taxation variables impact executives as they draw down company stock from a variety of accounts and compensation plans. The complexity surrounding stock-based compensation clouds the dilemma: Which funds should be drawn from to optimize the performance and minimize the tax consequences?
Employee stock purchase plans (ESPPs) offer great value to employees and help companies broaden their ownership culture. The most favorable plans offer a look-back and a 15% discount, yet according to a recent Fidelity survey, average ESPP participation is just 29%. Read on for 7 tips to improve participation in your company’s ESPP.
The cross-departmental nature of managing an equity plan can make gathering data and keeping up-to-date records a nightmare. There is no time more crucial than year-end to make sure you reconcile equity plan data across all of your internal stakeholders and departments.
Many private company employees holding stock options are looking for tax strategies prior to the company’s public offering. A lesser-known provision for pre-IPO options exercise allows employees holding ISO-options to lock in a lower pre-IPO price in order to minimize ordinary income taxes and start the capital gains period running during the pre-IPO period. Read on for more details surrounding HR 5719.
I’ve been thinking about those little pearls of wisdom or nuggets of information that hang on, things we learned ages ago that travel with us. One I’ve never forgotten came from good old Dad. I still hear the sound track in my head: “Don’t take wooden nickels” … “Worrying won’t change anything” … “Don’t ever pay full price.” But one piece of parental advice that stuck with me was some variation of the perennial favorite, “Don’t overcomplicate it!”—or “KISS.”
Designing and managing equity plans is half the battle – effective communications represents the other half and requires equity plan managers to put on their marketing caps. I know that you already have a ton on your plate, so here is a quick “Marketing 101” that will help you gain awareness for your equity plans.
When it comes down to it, we grant equity compensation for the benefit of the recipients. We aren’t granting awards for the joy of accounting for them, nor for the fun of taxing them. We want employees to be happy with their awards, and we want the awards to drive motivation, loyalty, and retention. Because inquiring minds want to know, Fidelity Stock Plan Services undertakes an extensive biannual survey to understand the participant side of the story, which can help plan sponsors to be more effective with their offerings. Here are a few of the results.
With the 24th Annual NASPP Conference and Exhibition coming up next week, we wanted to make sure you get the most out of your time in Houston. Attending conferences can be a struggle when trying to choose from a jam-packed schedule full of inspiring breakout sessions and balancing that with authentic, meaningful networking all while maintaining your day-to-day workload. You need to make the most of your time at the conference and here are 7 ways to do it.
Email is often incorporated into a stock plan communication strategy because all employees have an email account, it is inexpensive, and it can be effective. But how can you make sure it is effective? How do you make sure that your participant communications are reaching your audience? Here are 7 things that will make your message jump out of your participant’s inbox and get them to act.
Earlier this year, I was lucky enough to attend the 17th-annual Global Equity Organization conference in Boston. I feel right at home at conferences like this: They are teeming with people who love equity compensation as much as I do. I always look forward to hearing what people are talking about, whether it is in the keynote speeches, the more detailed breakout sessions, or just networking over a lobster roll in the Boston-themed exhibit hall. These conversations give me a glimpse of what the future holds, and when I hear the same topic addressed in a keynote, in a breakout, and in the exhibit-hall chatter, I know it must be a hot topic. So, what’s everyone talking about? Millennials!