Five Trends in Restricted Stock/Units

Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals (NASPP) identifies five trends in the usage of restricted stock and units, from the 2016 Domestic Stock Plan Design Survey, co-sponsored by the NASPP and Deloitte Consulting. Trend #1: Use of time-based stock grants and awards is still on the rise. The percentage of companies issuing stock grants and awards increased by 10 percent since our last survey (up from 81 percent in our 2013 survey to 89...

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10 Ways Stock Compensation Can Make You Happier

From being solely a subject for philosophers and poets, the pursuit of happiness has become a pragmatic, widely acknowledged arena of interest for companies and their employees. Stock compensation, if fully appreciated and understood, can improve happiness. Excerpted from an article by Bruce Brumberg, the editor-in-chief of myStockOptions.com, the 10 points summarized below show how. You can also read his full article at that website. Wealth creation. When your company's stock price increases—whether you have grants of stock options or...

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Top Ten Trends in Stock Plan Design

Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals (NASPP), summarizes the findings of the 2016 Domestic Stock Plan Design Survey in her blog post.  This survey co-sponsored with Deloitte Consulting LLP contains data from more than 400 companies on stock plan design and granting practices of restricted stock/RSUs, performance share/units, and stock options/SARs. Full Value Awards Still Rising. This survey saw yet another increase in the usage of full value awards at all employee levels. Overall, companies granting time-based restricted stock or...

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Optimizing Stock-Based Compensation for Retirement

By Charles "Chuck" Steege of SFG Wealth Planning Services, Inc. This is a summary of a detailed white paper entitled: The Great Drawdown: How to Optimize Stock-Based Compensation for Planned or Unplanned Retirement. Retirement is the long-awaited culminating event of a corporate career. The closer an executive rises to the top, the harder it is to stay there. At some point, whether the timing is right, health and wellness issues intervene or there is something more compelling to do than continuing...

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Tax Tips for Employee Stock Purchase Plans

By Geoff Zimmerman, Senior Advisor and Chief Compliance Officer, Mosaic Financial Partners Tax rules for the sale of employee stock purchase plan (ESPP) shares can be quite complex for plans that allow participants to purchase stock at a discount. The best way to explain the rules of the road for dealing with ESPP stock purchases and sales is through examples, to help ESPP participants better understand the nuances of these plans. Our fictional sample ESPP participant is Jim Brook of Orange, Inc. We'll see...

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More Employees Rank Company Stock as Their Top Benefit

BOSTON — For many people, their most important workplace benefit is a 401(k) or health insurance, but for a growing number of employees, a company stock plan is their top benefit. According to research1 from Fidelity Investments®, 16 percent of employees say company stock is their most important benefit, up from 10 percent in 2014. For employers, company stock plans can help attract and retain top talent. Almost two-thirds of employees (63 percent) said that participating in their company stock...

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Supercharging Employee Stock Option Programs

  Think there's no point in explaining the time value of employee stock options to employees? Think again! A panel discussion from the NASPP National Conference presented academic research showing that communicating the time value inherent in options can significantly change how employees view their stock options grants. This presentation also offers strategies for explaining time value and provides a company case study that dispels the myth that time value information is too much trouble to provide and too difficult for employees...

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Proposed Legislation Encourages Broad Use of Equity at Private Companies

Bills introduced in the House and Senate on July 12 would make it easier for startups and private businesses to give employees an equity stake in their company's success.  These bills encourage awarding employees stock options or stock settled RSUs (Restricted Stock Units) due to increased flexibility for paying the taxes owed upon exercise (options) or vesting (RSUs).  Employees generally pay taxes in the year they exercise options or when their RSUs vest, but this bill would allow them to defer those taxes for up to seven years as...

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Help, My Company Is Being Sold!

If you're holding restricted stock units, it's time to talk to a professional. This article was originally published on U.S. News by Kristin McFarland, Wealth Advisor at Darrow Wealth Management. Whether you're working for a large public company or a newly established startup, there's a good chance you're receiving some form of equity-based compensation. In recent years, restricted stock units have become an increasingly common form of equity compensation, as companies search for a simplified alternative to stock options. What may...

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Employee Stock Options Today

By Richard Friedman from the Ayco Digest: June 17, 2016 Stock options have been part of compensation pay in Corporate America for nearly a century. While they remain a relatively common long-term incentive award, they no longer are the primary such award for executives at most U.S. public companies. Yet, options continue to be the most utilized compensation mechanisms at pre-IPO start-up companies where they are a means of sharing future growth of the company with most or even all...

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