Announcing Better Plans, Better Management with Charles Schwab and Certent

A prestigious brokerage service and a dependable equity management system are key pieces to providing the best experience for your plan participants. When choosing what’s best for your company, you need to consider the individual attributes for each of these providers, and how well they work together. With the recent announcement of the enhanced integration […]

Tax Holding Periods and Leap Year

Leap year can make things complicated. For example, if you use a daily accrual rate for some purpose related to stock compensation, such as calculating a pro-rata payout, a tax allocation for a mobile employee, or expense accruals, you have to remember to add a day to your calculation once every four years. Personally, I think it would be easier if we handled leap year the same way we handle the transition from Daylight Saving Time to Standard Time: everyone just set their calendar back 24 hours. Rather than doing this on the last day of February, I think it would be best to do it on the last Sunday in February, so that the “fall back” always occurs on a weekend.

First Official Recommendation from the Investor Advocate

On February 24, 2014 the Securities and Exchange Commission established the Office of the Investor Advocate. According to the SEC, the purpose of the Office of the Investor Advocate encompasses three core functions: (1) to provide a voice for investors, (2) to assist retail investors, and (3) to support the SEC’s Investor Advisory Committee.

Make Your Proxy Pop!

Building your company’s proxy statement (Form DEF 14A) is a laborious task that involves countless hours of gathering required information in order to build a complete picture of your company for the public. Valid and correct data points are the most important elements of a proxy statement as shareholders will use the information to make critical decisions. But have you ever considered the experience that shareholders will have while consuming that information?

Determining Eligible Employees: from Entry Level to Top Executives

When building an equity compensation plan, companies have to consider which employees will be eligible to receive equity. Are you looking to develop an executive-only plan focusing on senior management or a broader program where all employees may participate? Both have their pros and cons, and pulling guidance from larger corporate goals and vision can help you lay out a plan that will drive the right results.

More Value, Less Money for CEO Pay: The Role of Performance Awards in Executive Compensation

Executive compensation is a complex and controversial subject. Companies are often criticized for overpaying their executives, while shareholders are questioning the pay-setting process and the outcome it produces. This debate has triggered regulatory changes, which in turn have affected the composition of executive compensation packages. Over time, companies are offering less and less cash-based compensation and steadily increasing the portion of performance-based awards.