Legislative Update: Empowering Employees Through Stock Ownership Act Resurfaces In The Senate

This blog post is provided by myStockOptions.com, a leading source of educational content on all types of stock compensation. While stock options continue to be popular at startups and other pre-IPO companies, employees cannot sell stock at exercise to pay the exercise price and the taxes on the income. Moreover, under current law those taxes cannot be delayed. Last year, an encouraging legislative proposal was introduced in the House of Representatives to address this issue. Approved by a House vote...

More

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...

More

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...

More

Equity Compensation Advisor News: July/August 2016

Here's the latest news, tips and information for financial advisors that help clients with the diversification of their company stock and options. Helping Clients Get More From Their Equity Compensation: Companies grant more than $110 billion in equity awards every year, and many have concerns about how much employees value these awards.  UBS research across industries and service providers found that two out of three participants do not place significant value on the equity awards they receive.  However, this misperception can be...

More

Companies Trending Away from Time Based Awards

In a recent Equilar blog titled “Companies Just Say No to “Pay for Pulse,” the author cites a recent study of Equilar 100 companies that found 70% of the executive pay mix is now performance based.  In another report (Equilar’s 2015 Equity Trends Report), “nearly 70% of S&P 1500 companies used performance awards in 2014, up from about 50% in 2010.” There has been a great deal of evolution in the mix of equity incentive compensation vehicles and terms over the last...

More

Updated Survey of Share Ownership Guidelines and Stock Retention Requirements

From the Ayco Compensation & Benefits Digest: March 18, 2016 Share ownership guidelines remain a common feature in place at an overwhelming majority of public companies. The basic premise of mandating ownership of company stock is that the interests of senior management will more closely align with those of shareholders. In the current “say‐on‐pay” era, this is perceived to be of importance. Whether share ownership results in better corporate or stock performance remains to be proven. We have been tracking the...

More

10 Companies with Generous Stock and Option Programs

By Michal Addady from Fortune Company stock and option programs (Equity Compensation) can serve as additional ways to pay workers beyond wages or salaries. These programs supplement base pay to provide competitive compensation, can act as a recognition tool to award employees for good work, and they help ensure that employees’ interests are aligned with shareholders. These 10 employers from Fortune‘s 100 Best Companies to Work For list understand the importance of those three objectives and offer their employees ample...

More

Professors Recognized for Research on Perceived Value of Employee Stock Options

AICPA, CIMA Recognize 3 Professors for Management Accounting Research on Valuing Employee Stock Options Greatest Potential Impact on Management Accounting Award given at AAA Management Accounting Section’s mid-year Meeting. Dallas (Jan. 11, 2016) — The  American Institute of CPAs (AICPA) and the  Chartered Institute of Management Accountants  (CIMA) have recognized three professors for research into the impact of corporate employee compensation programs with the Greatest Potential Impact on Management Accounting Practice Award. The AICPA and CIMA, under the banner of their Chartered Global...

More

Dividing Stock Compensation in Divorce

By Jennifer Namazi, Editorial Director, NASPP Divorce is almost never pretty, and sometimes the more there is at stake, the more complicated the process becomes. In today’s blog I’ll explore how a couple of states are taking a more definitive stance on how stock compensation is handled in divorce proceedings. In Illinois (an equitable distribution state for purposes of dividing marital assets in a divorce), recent changes to their divorce laws included that stock options and restricted stock acquired during...

More

Startup Employees: Here is the proper way to value your stock options

By Matt Rosoff from Business Insider What happened at Good Technology is an excellent reminder for employees working at any venture-funded private company on how to treat those stock options you're getting. For most employees, for the sake of your own financial planning and salary negotiations, those options should be treated as if they are worth $0. Because until you sell them, that's what they're worth. OK, technically, by some measures, those options are worth more than $0. But you...

More