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?
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.
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.
Are you new to the world of equity compensation or are you an experienced practitioner ready to achieve your Certified Equity Professional designation? While the 5 hour test can seem daunting and sifting through the endless questions about taxation, accounting and regulations can feel intimidating, read this blog for a few tricks that will put you on the track to acing the exam.
As part of its Simplification Initiative, FASB issued ASU 2016-09 on March 30, 2016, an update to ASC Topic 718. For public business entities, the amendments in ASU 2016-09 are effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017 and interim periods within annual periods beginning after December 15, 2018. There are a few key provisions of the new standard, here we will focus on accounting for income taxes and elimination of APIC pool.
Have you read the recently published Global Equity Insights 2016 report? Overall conclusions within the comprehensive 33 page report are consistent with previous year’s findings that long term incentive plans are being offered by more companies and across a greater portion of the workforce than ever before – and that is translating into success. The survey was sponsored by 10 companies from various industries including Fidelity, the Global Equity Organization, hkp/// group, SAP, Siemens, and more. The survey sample includes participation from 148 large global companies from 21 different countries. 91% of those companies have a market capitalization above USD 1 billion, and 60% of the companies reported revenues of more than USD 5 billion in 2014.
In the novel Scoop (1938), a satire about journalism by British writer Evelyn Waugh, a character declares: “News is what a chap who doesn’t care much about anything wants to read.” Respectfully, we disagree. Here at myStockOptions.com, we both care about equity compensation and take a keen interest whenever news about stock comp flashes across our radar screens. In this week’s blog commentary, we summarize some recent appearances of stock compensation in the mainstream news media, including stories about equity awards to high-profile figures at prominent companies.
When employees are transferred to a new location, they are probably thinking about packing, selling their house, and finding their way around a new city. Meanwhile, their stock plan administrators are thinking about the complicated world of stock plan taxation they have just entered. Different jurisdictions have different tax laws. As a stock plan administrator, you are responsible for tracking where participants live throughout the life cycle of their stock awards – from grant through exercise/release – and properly withholding taxes in each jurisdiction.
We hear a lot these days about “the war for talent.” “Talent” is never defined, nor is it ever explained why labor markets are so much more competitive now than they used to be (the “war” existed, it was said, even when unemployment was very high), but we all know that what is meant is mostly top-level managers and maybe software engineers. These are the people, it is said, who should get most or all of the incentives, including equity. There are a number of explanations for this that seem to make sense but that research shows are just not true.