With brokers increasingly able to facilitate equity award transactions involving fractional shares and companies recognizing their value, offering fractional shares under share incentive plans has gained significant traction in recent years.
Integrating fractional shares into employee share incentive plans brings greater flexibility, inclusivity, and administrative efficiency, enabling access to higher-priced stock, broadening participation, and simplifying tax and dividend processes and offering tangible benefits for both companies and employees.
Successful implementation requires thoughtful planning: from ensuring broker capabilities and legal compliance to updating award documentation and employee communications.
Read our latest paper to learn how fractional shares can modernize your equity compensation strategy.
Author
Denise Glagau
Denise Glagau is the Managing Partner of Baker McKenzie's California offices in San Francisco, Palo Alto and Los Angeles and leads the Compensation Practice in the Firm's California offices. Denise has authored several articles and frequently speaks on topics of interest for legal and other professionals dealing with share plan issues. She is a member of the National Association of Stock Plan Professionals (NASPP) and Global Equity Organization (GEO). She is a ranked practitioner by Chambers USA in the area of Employee Benefits & Executive Compensation. She is also a member of the Firm's Financial Institutions and Healthcare & Life Sciences Industry Groups.
Denise advises public and private multinational companies on the tax and legal issues related to offering employee share plans and other incentive compensation programs in their home countries and on a global basis. She works with companies to design equity plans, draft award documentation, review and optimize tax implications, comply with securities registration, exchange control and other regulatory requirements, minimize labor law exposure, and address data privacy concerns and other compliance issues associated with offering employee equity and other incentive plans around the world. She also advises companies on the implications of corporate transactions on equity plans and awards, including assisting with tax rulings, regulatory filings and employee communications.
