st launch - global equity...timeline oct 2015 dec 2015 march 2016 aug 2016 oct 2016 nov 2017 jan...
TRANSCRIPT
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Make Life Sweeter...with a New Global Share Plan
Sally Blanchflower, Managing Associate, Tapestry ComplianceJanet Cooper OBE, Partner, Tapestry ComplianceJane Darlington, Director, Stitch Communications
Elena Petrou, Share Schemes Manager, Aviva
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43% on 1st
launch
9 countries
Communications viewed 16,438
times
Average 92% of max monthly contribution
Measurable employee impact
Thank you for joining us…
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Introducing our speakers
Elena PetrouAviva, Share Schemes Manager
Jane Darlington Stitch Communications, Director
Janet Cooper OBE Tapestry Compliance, Partner
Sally Blanchflower Tapestry Compliance, Managing Associate
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About Aviva• Leading global insurance and financial services group
• In operation for 300+ years, now operates in 26 countries
• Over 33 million customers globally
• Over 37,000 employees globally
• UK and Irish employee tax-advantaged plans for 30 years
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Aviva’s Global Matching Share Plan• Why now?• Timeline and internal support• Getting the team together• Setting objectives for the plan• What was involved:
o Agreeing the ‘term sheet’o Approach to overseas legal and
taxo Drafting the documentso Working with plan administrators
• Developing the communications campaign:o Objectiveso Conceptso Approacho Rollout
• Launch• Results• Key reflections
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Why now?• Aviva’s successful UK and Irish all-employee plans – 74%
of UK eligible employees participate in a share plan!
• CEO’s strategy
• Requests from employees overseas increasing as mobility of workforce increases
• Research on employee share ownership proves creates productivity and drives innovation, encourages retention, commitment and engagement
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TimelineOct 2015 Dec 2015 March 2016 Aug 2016 Oct 2016 Nov 2017 Jan 2017 Apr 2017
Suggested to General Counsel
CEO’s initial approval
Kick off meeting with colleagues &
external experts
First deduction
First purchase
Finance & HR initial buy-in Launch!
Final approval
Invitation Window
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Getting the team togetherKick off meeting March 2016• From Aviva:
o Share Planso Co Seco Legalo HR o Financeo Taxo Internal Comms
• External experts:o Administrators:
Barclayso Communications:
Stitcho Legal and Tax:
Tapestry
• Involved but not at initial meeting:o Translatorso Marketing / branding
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Setting objectives
• Key to success!
• Aviva’s objectives:oRetentiono Engagement
• Plan design:o Eligibilityo Free or contributoryo Thresholds for contributionso Vesting periodo Stopping contributionso Leaverso Post-vesting arrangements
• Comms:o Imageryo Typeo Translations
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Feeding objectives into designDesign feature Objective
Buy 1 get 2 free Very attractive match, very generous, rewards and reduces risk to employees
Save for a year A commitment to the company, but not too long
Match after 3 years Skin in the game longer, aligns interests
Min £5 a month Accessible to lower paid
Max £40 a month Attractive to lower paid but not seeking larger contributions to keep costs down
Nominee (brokerage) for post-vesting holding
Enables share retention
Participating Companiesdetermined by board
Captures key markets in first launch and can roll-out to other entities e.g. JVs in phase 2
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What was involved?Agree a term sheet first!Shares • Type of shares offered & limits
• Source: new issue, market purchase, trust?• Dividend reinvestment and dividend
equivalents?
Cycle • If purchase shares – how often? Level of contributions?
• If matching shares – how many (ratio) and when?
People • Eligibility – who can join and when?• What happens if they leave?• Mobile employees?
Country specific
• Alternative structure required for any countriese.g. tax-qualified?
• Salary deductions issues?
Aviva thought:• Helpful to clarify
features and align objectives
• Agreed before drafting started and admin systems built
• Helped local teams to understand plan
• Controlled costs
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What’s involved:Approach to overseas legal and tax
• Countries • Agree level of due diligence
(high level or local lawyer sign-off)
• Legal and tax considerations to be covered
• Localised for tax savings?• Timetable for filings• Identify any local document
requirements and translations
Aviva decided:• Local advice for first operation• Provided tax notes for
employees• Considered localised plans in
some key marketso implemented for France
• Translated key docs• Appointed local
champions for guidance
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What’s involved:Documents!• Plan rules
• Purchase agreement
• Shareholder circular
• Linking agreement with trust
• Service agreement with administrator
• Recharge agreements
• T&Cs of administrator for broking/nominee
• Comms and website terms
Aviva’s approach:
• Start plan rules early, once term sheet agreed
• Other docs a work in progress
• Keep all docs in plain English• Focus on participant’s
experience for documents they see
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What’s involved:Working with administrators
Important to make sure administrators can easilyand cost-efficiently:
• Manage the plan
• Show participants their vested and unvested share awards
• Deal with currency requirements
Aviva’s system:• Online portal• Access to info on vested/
unvested awards• Deals with currency requirements• Online sale arrangements• Nominee (brokerage) accounts• Delivery of sale proceeds• Alignment with communications
style
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Developing a communications campaign
Key considerations:• Objectives
• Consistency
• Culture
• Audience
• Stakeholders
• Brand
Aviva’s approach:• Commission expert comms
agency
• Name of the plan
• On brand, involving Aviva’s brand team and brand assets
• Range of communications available to local champions
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talkwithstitch.co.uk©Stitch Communications 2016
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talkwithstitch.co.uk©Stitch Communications 2016
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Launching the planUsually includes key stakeholders signing off:
• Finance – funding and accounting treatment
• Tax – deductions and recharge
• Legal – document review and trust arrangements
• Co Sec – Board/RemCoapproval
Aviva’s approach:
• Submit to RemCo early in the process for initial approval, then agree key structure and authorise GC/CoSec to finalise
• Get all key stakeholders involved at outset, involved in decisions and obtain final approval in all areas
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Around the world in 30 days!
• Engage with local champions
• Agree any local practice differences
• Distribute suite of communications
• Training on the administration system
• Educate and listen to local concerns
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Results of Aviva’s first launch• Take-up:
o 43%! (target was 33%)o 25% was millennials o 93% of max monthly contribution
• Comms:o Google analytics = real time tracking o 1 week of teaser campaign = 3,100 hits to site (22+% of eligible
population)o 16,438 sessions from teaser campaign to enrolment closureo Average pages visited: 4.6o Average session duration: 5mins 3secso Animation had 3,645 views
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Key reflections• CEO and leadership buy-in crucial• Always refer to plan objectives• Employee-focused approach• Communications = more than an email• Plan champions key to success• Maintain permanent online resource• Realistic timetable and lead-in time to launch• Enjoy the project and be excited about it…then your employees will be too!
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Questions?
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Thank YouElena Petrou
Jane DarlingtonStitch Communications
Janet Cooper OBETapestry Compliance
Sally BlanchflowerTapestry Compliance
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Thank You Thank you for attending GEO’s 18th
Annual Conference in Rome. We hope you enjoyed this session. • If you require CPE Credit, don’t forget to Sign Out
• Two ways to give us your feedbackon this sessiono Mobile appo Paper surveys available at the door