presentation to eoa conference 10 may 2012
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Presentation to EOA Conference 10 May 2012 Global Equity Plan administration – best practise, common mistakes and current trends. The Regulatory Landscape. Number of Plans in Operation. Participant Numbers By Country. Percentage of the Labour Force that Participate. - PowerPoint PPT PresentationTRANSCRIPT
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Presentation to EOA Conference10 May 2012
Global Equity Plan administration – best practise, common mistakes and current trends
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The Regulatory Landscape
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Number of Plans in Operation
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Participant Numbers By Country
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Percentage of the Labour Force that Participate
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UK Participation Numbers Per Plan
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UK Trends in Plan Types
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US Current Trends
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
IncentiveStock Options
Non-qualifyingOptions
StockAppreciation
Rights
RestrictedStock
RestrictedStock Units
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US Option Plans Changes
Type of Change Percentage of Companies
Reduce the number of employees receiving options 48%
Reduce the total number of options granted 44%
Replace some/all options with restricted stock 33%
Replace some/all options with performance based stock 19%
Replace some/all options with long term cash incentives 13%
Replace some/all options with stock appreciation rights 5%
Replace some/all options with shares 1%
Other change 8%
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US ESPP Trends
0%
10%
20%
30%
40%
50%
60%
70%
80%
3% or lesscontributed
3 - 5 % 5 - 8% Over 8%
Employee
Manager
Executive
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ESPP Trends
Type of Change Percentage of Companies
Eliminate the “look-back” feature 26%
Reduce the discount on stock purchase 24%
Eliminate the plan entirely 17%
Other 7%
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Australian Global Plans – Countries Participating in the Plan
47
48
49
50
51
52
53
54
55
56
2006 2007 2008 2009 2010 2011
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Australia – The Number of Plans that Companies Operate
12
34+
2009
2010
2011
0%
10%
20%
30%
40%
50%
60%
2009
2010
2011
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Employee Plan Types Used in Australia
TE FreeTE SalarySacrifice TD Salary
Sacrifice Other
2009
2010
2011
0%
10%
20%
30%
40%
50%
60%
70%
2009
2010
2011
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Executive Plan Types - Australia
RightsOptions
SharesOther
2009
2010
2011
0%
10%
20%
30%
40%
50%
60%
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How to Make Your Plan Successful
Determination about global/local focus
Decision about whether shares are important
Translation – is this required
Plan champions
Communication and engagement channels
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Common Mistakes
Eligibility data
Withholding tax and detailing with it immediately
Management of forfeited shares
Terminations
Taxation – understanding your employees, international assignees
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Discussion