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.
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.
Employee stock purchase plans (ESPPs) offer employees a fantastic opportunity to establish an ownership stake in their company and share in its potential growth. The company benefits from ESPP participation as well, because it fosters a positive culture where everyone is focused on a shared goal. While this sounds like a win-win situation, it turns out that many people miss out on this important opportunity.
When privately held companies prepare for an IPO, they have to consider many areas that will be undergoing substantial transformation, such as accounting, legal, corporate governance, and equity incentive programs. The latter is especially important as equity compensation is a key element in the creation of shareholder value.
Earnings per share (EPS) is one of the most important corporate performance metrics, yet, one of the most complex measurements for companies with multiple types of equity awards. Jim Vincent, the vice president of client support at Certent, along with Ken Stoler of PricewaterhouseCoopers LLP and Raul Fajardo CEP, QUALCOMM Incorporated will be talking about the challenges of computing EPS at the 23rd Annual NASPP Conference in San Diego later this month. We met with Jim Vincent to take a peek at some of the considerations that may affect your EPS calculations.
Employee stock purchase plans (ESPPs) provide an effective way to incentivize employees and offer lower compensation cost and tax advantages to the issuer. When developing an ESPP plan, companies must consider a number of regulatory requirements which may affect the cost of the program and participation rates.
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.
Offering an employee stock purchase plan provides your company with the opportunity to implement a broad-based equity program that is a benefit to all employees. An ESPP is an attractive opportunity to employees – from the discounted stock purchase price to the simplified enrollment through pre-determined payroll deductions. Implementing an ESPP offers significant value to employees and there are 5 reasons why your company should consider designing a plan today.