All pre-IPO and public companies must have their financial processes and statements audited by an independent auditor, and as a part of this process the auditor will examine your stock compensation plan. By doing some anticipatory work, you’ll be well prepared for the audit rather than relying on the auditor to uncover any issues that need to be addressed – potentially delaying the IPO process. Here are four things you can do now to avoid a problematic audit.
Tax accounting, modifications, retirement provisions, SEC disclosures….it’s enough to make your head spin. When it comes to equity compensation management, the complexities are endless, but what does Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals, declare as the stock plan area that companies get wrong most often? Read this blog to find out.
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.
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.