In just a few short weeks, Certent clients, partners, sponsors, and equity compensation thought leaders will come together in downtown Nashville, TN for the 6th annual Certent Summit. The event kicks off Monday, May 22nd with in-depth product training, networking, inspiring keynotes, and more.
How early is too early to exercise? If it were possible to exercise pre-vested incentive stock options, imagine the tax savings. One of the big concerns for those facing a wealth event in private company stock is taxes. Timing is everything in exercising stock options. If you manage your company’s equity plan, you need to know about early exercise of Incentive Stock Options.
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.