Why hire through a PEO? When companies start expanding internationally, it is often important to “put boots on the ground” as quickly and cost-effectively as possible. The traditional approach of establishing a local entity and employing employees through the local entity may not always work due to the cost and time involved in setting up and maintaining the local entity and local payroll, as well as the complexity of establishing and administering supplementary benefits. Aside…
In recent years, some companies have started offering their stock-based awards to more of their “rank and file” employees or have made one-time or periodic, broad-based grants in connection with special occasions. In addition, many private emerging growth companies, which tend to make grants to their general employee population, have also started granting RSUs instead of options to their employees as the company gets closer to an initial public offering. If you fall within this…
Gender pay gap and pay equity are big discussion topics for companies around the world as more and more countries enact laws intended to close the gender pay gap and as case law develops involving discrimination claims related to pay equity. Beyond strictly legal obligations, many companies also face shareholder and employee pressure for increased transparency around diversity and gender pay. The Gender Pay Gap vs. Pay Equity In brief, the gender pay gap relates…
Now is the time to consider opportunities to manage global pension cost and risk. Many employers have already frozen their defined benefit plans and implemented defined contribution plans. Of course, such cost-reduction strategies may raise employment law issues in non-US jurisdictions because of the Acquired Rights Directive in EU jurisdictions and similar legislation elsewhere. In considering any such change, an employer has to consider how such change will be communicated to employees and employee representatives,…
Many US-based global employers can lose sight of compliance matters connected with employee benefit plans managed by their non-US operations as often non-US plans are statutory plans, maintained by a governmental agency, where the employer’s only obligation is to make the required contributions. As the first quarter of 2018 comes to a close, now is a good time to review your company’s global pension compliance. Delinquency Red Flags The local non-US affiliate may be delinquent in completing…
When granting equity awards, one of the most important questions is the tax effect of such awards. Granting awards that have a negative tax impact on the employee or the company is counter-productive and should lead companies to consider other ways to incentivize their employees. On the other hand, should companies maximize the availability of favorable tax treatment for equity awards in certain countries? This is not an easy question to answer. Favorable Tax Treatment…
It is almost the end of the calendar year, and in addition to wrapping up gifts and holiday parties, it is time for multinational companies to consider the necessary tax and regulatory filings for global stock plans triggered by the close of 2016. As you consider the steps your company may need to take to start the new year right, please see our Global Equity Services Year-End / Annual Equity Awards Filing Chart, which contains…
We are seeing an accelerating trend among U.S. companies to add non-U.S. residents to their Board of Directors. This makes sense: as more and more companies “go global” and expand in ever more countries, their Boards should reflect the global nature of the company.
What takes many companies by surprise, however, is that the tax treatment of cash compensation paid and equity awards granted to the non-U.S. directors can be quite complex. In addition, for the equity awards, companies will need to consider regulatory restrictions such as securities law requirements and ensure that the grants can fall under an exemption.
It is almost the end of the calendar year, and in addition to wrapping up gifts and holiday parties, it is time for multinational companies to consider the necessary tax and regulatory filings for global stock plans triggered by the close of 2014. As you consider the steps your company may need to take to start the new year right, please see our Global Equity Services Year-End / Annual Equity Awards Filing Chart, which contains…
I recently co-authored an article with my partner Susan Eandi in Bloomberg BNA’s Corporate Counsel Weekly. In the article, we discuss the different employment and compensation considerations when entering new jurisdictions. Topics addressed include how to engage workers in each jurisdiction and the integrated analysis of the employment, tax and corporate consequences of a direct hire versus an indirect hire or contractor for a U.S. company. To read the full article, click here.