Institutional Shareholder Services (ISS) recently released their 2016 proxy voting guideline policy updates. These updated policies are anticipated to be applied to shareholder meetings on or after February 1, 2016. A few of the most important U.S. benchmark policy updates include changes to the director overboarding policy, updates to policies around unilateral board actions which adversely affect shareholder rights, and a policy change addressing insufficient disclosure of compensation arrangements for executives at an externally-managed issuer.
As the year winds down, there are a few dos and don’ts that may impact how your participants plan to exercise vested stock options before year-end. In order to make sure employees get the most value out of their equity awards, it may be helpful to provide some considerations for equity compensation planning.
In one of our most watched on-demand webinars, Getting IPO Ready: Preparing Your Strategy and Equity Plan, experts discuss what it takes to gear up for your IPO and outline essential success factors across the finance organization. Preparing for an IPO takes resources, expertise, and coordination across departments, and the best time to begin the preparation process is now! Below you will find seven key areas affected by an IPO as presented by Nicole Irvin, Vice President, Morgan Stanley Investment Banking Division. Irvin provides detailed information about who from your organization should be involved, what key things you need to be thinking about, and what can you do now – even if you are well in advance of an IPO – to start to prepare.
Clawback provisions, referring to money or benefits that can be taken back as a result of special circumstances, are no new concept in the world of executive compensation. However, in a recent press release, the SEC proposed rules that would require companies to adopt and comply with a compensation recovery policy. This SEC proposal marks the final outstanding regulation required by the Dodd-Frank Act of 2010. Here is a bit of detail surrounding the proposed listing standards.
Board members bring of wealth of talent and experience to the companies they serve, but often have no practical exposure to the basic building blocks of effective compensation design. Before new compensation committee members jump into aligning incentives with company strategy, discussing “best practices” or considering accounting and tax implications, it can be very beneficial to review the concepts typically used by compensation professionals in incentive design.
On April 30, 2015, the Court of Chancery of the State of Delaware rendered an important case decision in a procedural matter dealing with the equity compensation of non-employee members of a company’s board of directors. As we discuss in this blog, companies may wish to evaluate their equity compensation plans and ascertain whether their process regarding non-employee director equity awards needs any adjustments in light of Calma.
The 7th Annual Regional New England Conference will be held in the Greater Hartford, CT area on Thursday, July 16th, 2015. As those who have attended a Connecticut/Boston conference in the past know, this well-established event is an excellent opportunity for learning and networking with equity compensation colleagues.
On June 8th, 2015, The Financial Accounting Standards Board (FASB) issued an exposure draft detailing the proposed amendments to the current employee share-based payment accounting standards as part of an initiative to reduce complexity surrounding the current accounting standards. As stated in the exposure draft, the FASB feels that, “The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements.” Here are a few of the main provisions and what they could mean to your current ASC 718 processes.
What may seem like the simplest award structure to you as a stock plan administrator, can feel like a foreign concept to participants. A critical element to equity plan success is participant comprehension and engagement, and the most effective way to increase these key elements is employing an online participant portal.
Preparing for an acquisition can feel a bit daunting for most. There are lots of moving parts and decisions to be made – not only about the course of action for the company and its employees, but also for the equity awards of both the parent and the target company. While many of these decisions and actions will be made once the acquisition process has begun, there are a few steps you can take in advance to better prepare your equity compensation plan for a corporate action.