More than 200 public and private companies recently participated in our stock plan administration benchmark survey. From technology providers to healthcare and pharmaceutical companies, there was a wide range of participation across industries and equity plan design. Here is what we found to be true around how teams are spending their time, weaknesses and strengths in regards to technical skills, and a few ideas on how you can improve processes.
During our recent thought leadership webinar, 10b5-1 Survey Results: What do They Tell Us?, Christine Cognetti McCasland, Executive Director within Morgan Stanley’s Corporate Equity Solutions unit, and Mike Andresino, Partner at Posternak Blankstein & Lund LLP, reviewed results from a joint survey conducted by Morgan Stanley and the NASPP. During the presentation, McCasland and Andresino laid out key requirements of a 10b5-1 plan. We’ve recapped them for you.
The rise of video is no surprise given the massive shift in culture and technology – and the staggering popularity of YouTube! At one time, video was simply a means to entertain; pop a VHS in your VCR and grab the popcorn, but these days video is so much more than that. More and more companies are using video to not only entertain, but to educate and engage – and stock plan administrators can too.
If you’re as much into stock plan education as we are, you’re probably also really into survey data. That makes today a good day for both of us at this blog. We have been perusing the 2015 Global Equity Incentives Survey by PricewaterhouseCoopers and the NASPP. The survey presents questionnaire data from 245 multinational companies with employees in 75 countries. The researchers found that the use of equity awards by the surveyed companies generally continued to grow in 2014 and 2015, after falling in 2009–2011 and rebounding in 2012. With this growth in the use of equity has come an expansion in stock plan education and communications.
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.
Developing a strong relationship with the right broker is an essential component for a public company’s equity compensation program. With so many to choose from, it can be difficult to make the right choice, but doing so can have a very large effect on the success of your plan. There are a few critical elements to creating and maintaining a solid broker partnership including: asking the right questions from the get-go, initiating a successful roll out of your new broker and leveraging their educational resources.
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.
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.
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.