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Global Equity Organization (GEO) Global Share Plans Ranking Study (2023-2024)

By 1 Min Read

In collaboration with leading experts in the design, implementation, and administration of employee share schemes, the GEO Global Share Plan Rankings Study evaluates the receptivity of various countries operating environments to the adoption and participation in these schemes by employers and employees. Discover the countries that excel as global leaders in fostering employee share schemes, harnessing their potential to drive organizational growth and enhance employee prosperity. As a proud sponsor of this survey, we encourage you…

Global Share Plan Update (September 2024)

By and 1 Min Read

We have released the September 2024 edition of our “Clients & Friends Newsletter,” which reviews the latest developments impacting share plans globally. Explore the newsletter, and/or register for our upcoming October 8th webinar, to learn more about the impact of the following tax, legal and regulatory changes on your share plans:

The Case for Not Mentioning Equity Awards in Offer Letters

By 5 Mins Read

In many cases, when a candidate is recruited, they are being offered a new hire grant of equity awards and (possibly) subsequent “refresh” grants. Depending on the company, this can be a significant component of the employee’s total compensation and may be the most important piece to get the candidate to accept the offer.  So, naturally, companies tend to include information about the equity awards in the offer letter provided to the candidate, together with information…

Global Considerations for Cashing Out Equity Awards in Mergers

By 1 Min Read

In M&A transactions, it is common for companies to cash out the vested equity awards of the target company and convert any unvested portion of the award into an award that will pay out in the future. In our latest guest blog post for the NASPP, we look at the various global tax and regulatory considerations and flag potential risks ranging from unfavorable tax treatment to compliance issues under local rules and regulations.  To read…

Beneficiary Designation Drawbacks

By 1 Min Read

When we are asked to review equity plans and related agreements governing equity awards and share purchase rights granted to participants in the United States and abroad, they often contain beneficiary designation provisions. While nice in theory, beneficiary designations are administratively burdensome and fraught with pitfalls, particularly outside the United States. As we’ve recently been helping several companies work through the ins and outs of the treatment of awards upon the death of a participant,…

International Considerations for Executive Severance Plans

By and 1 Min Read

It is common practice for US-based multinational companies to adopt executive severance plans to provide for additional benefits to be paid to executives in the event of certain specified termination events, including those in connection with the change of control of the parent. These benefits may consist of cash payments, favorable treatment of equity awards, and/or other benefits (e.g., payment of health insurance premiums). These types of plans help companies recruit and retain talent and…

How an Equity Plan Team Can Add Value in a Recession

By 1 Min Read

It’s easy to read current financial headlines and understand that it’s possible the US and other countries may be headed into or are currently already in an economic recession. Either way it doesn’t hurt to start preparing for a potential downturn. In such a downturn, it’s quite possible that corporate budgets will tighten and companies will be tasked with finding ways to stretch each dollar further than the quarter before. Equity stock plan administrators tasked…

Should Your Global Equity Plan Include Recharge Arrangements?

By 1 Min Read

Global equity award programs can be costly to the US parent corporation. One strategy to offset some of this expense can be to use recharge arrangements to transfer some of the cost to the local entities that award holders are employed by. This can produce a tax benefit at the local level that would not otherwise be available to the US parent. To consider if recharge arrangements should be included in your global equity plan,…

When Is Translation Required for Award Documents?

By 1 Min Read

We are frequently asked whether equity award documentation provided by a multinational company to employees / service providers in another country must be provided in local language. Given a recent, significant development on this topic in Quebec, Canada, we thought it would be a good idea to revisit the requirements and recommendations related to translations for equity award documentation. For purposes of this post, we are assuming the parent company is a US-based company with…

Think Twice Before Changing your ESPP Mid-Offering

By and 6 Mins Read

The question of mid-offering period changes to employee stock purchase plans (ESPPs) has been coming up with unusual frequency, in some cases due to stock price volatility causing an earlier-than-expected shortage of shares and in others due to companies desiring to quickly make their plans more competitive in the ongoing battle for talent. Impact of a Modification of a Section 423 ESPP Option But a mid-offering change to the terms of a Code[1] Section 423…

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