Computershare Limited · ASX:CPU
Computershare — Computershare and Nua Group webinar: Is your equity plan effective? (2018)
35 slides from Computershare's conference presentation, 2018
Slide 1: Is your equity plan effective?
Is your equity plan effective?
Slide 2: Disclaimer
The following presentation and the views expressed by the presenters are not intended to provide legal, tax, accounting, investment, or other professional advice. The information contained in this presentation is general in nature and based on authorities that are subject to change. Applicability to
Slide 3: Enter your question into the Questions pane
Enter your question into the Questions pane on the GoToWebinar Control Panel. 3
Slide 4: Introductions
Introductions Carine Schneider Partner, Nua Group [email protected] Carine has deep management and consulting experience in compensation, the private market and financial services. Before joining Nua, Carine was the President, NASDAQ Private Market, was a Partner at PwC, was the founder and
Slide 5: How do you know if your plan is effective?
How do you know if your plan is effective?
Slide 6: Is your plan effective?
Is your plan effective? • Plans are designed with goals in mind, but rarely is anyone revisiting and measuring against those goals.
Slide 7: Is your plan effective?
Is your plan effective? • Plans are designed with goals in mind, but rarely is anyone revisiting and measuring against those goals. • Equity plans contribute cash and tax deductions to the company, which is rarely reported to management.
Slide 8: Is your plan effective?
Is your plan effective? • Plans are designed with goals in mind, but rarely is anyone revisiting and measuring against those goals. • Equity plans contribute cash and tax deductions to the company, which is rarely reported to management. • Employees are granted awards but do you know if they value t
Slide 9: Is your plan effective?
Is your plan effective? • Plans are designed with goals in mind, but rarely is anyone revisiting and measuring against those goals. • Equity plans contribute cash and tax deductions to the company, which is rarely reported to management. • Employees are granted awards but do you know if they value t
Slide 10: Is your plan effective?
Is your plan effective? • Plans are designed with goals in mind, but rarely is anyone revisiting and measuring against those goals. • Equity plans contribute cash and tax deductions to the company, which is rarely reported to management. • Employees are granted awards but do you know if they value t
Slide 11: Stock Options
Stock Options
Slide 12: Stock option data required
Stock option data required Number of total Number of stock Total shares granted in employees in the option participants the past 48 months company Number of employees Number of shares Total shares exercised who have left the company cancelled in the past 12 in the past 12 months in the past 12 month
Slide 13: Where do you get data?
Where do you get data? Your plans provider Computershare Resources • Stock plan reporting tool • Stock Plan Management • Financial reporting tool Reporting Tool (SMART) • OPTRACK financial In-house reporting tool • Both available from the • Human resources Automated Stock • Finance Administrator’s P
Slide 14: Stock plan reporting tool
Stock plan reporting tool Computershare Automated Stock Administrator's Portal > My Services Welcome James Kelley! Company: DEMO COMPANY Communications My Services Change Password | Change SecurityQuestions | Logout References Below is a list of services which are available to you vis, Please ensure
Slide 15: Computershare
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Slide 16: Sample information
Sample information Unique participants in plan 761 NQ shares granted (past 12 months) 3,813,007 NQs shares exercised (past 12 months) 2,289,242 Participants terminated (in past 12 months) 292 Shares Cancelled (in past 12 months) 532,826 Shares about to expire (within the next 12 months) 106,198 Numb
Slide 17: Restricted Stock Units (RSU)
Restricted Stock Units (RSU)
Slide 18: RSU data required
RSU data required During the past 12 months: Total number of units/ Number of RSU Number of RSU grants shares granted eligible recipients that matured Expense cost to the Number of RSU’s that Expense cost to the company for RSU’s that company for RSU’s that were forfeited and were granted were lapse
Slide 19: OPTRACK Financial Reporting Tool
OPTRACK Financial Reporting Tool
Slide 20: GPTRACK
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Slide 21: Sample information
Sample information Unique participants in plan 364 RSU’s granted (past 12 months) 18,200,000 All outstanding RSU’s 24,750,000 RSU’s matured (past 12 months) 2,289,242 Participants terminated (in past 12 months) 103 RSU’s Cancelled (in past 12 months) 17,400,000 Expense realized over 12 month $97,352
Slide 22: Employee Stock Purchase Plans (ESPP)
Employee Stock Purchase Plans (ESPP)
Slide 23: ESPP Data Requirements
ESPP Data Requirements Number of eligible employees Number of eligible Total amount of cash who have participated in the contributed during past employees past 18 months % participation offering period in current offering Cost of shares purchased Total discount (in cash) Value of stock held by (not
Slide 24: Issuer Online for ESPP reports
Issuer Online for ESPP reports
Slide 25: Other helpful data
Other helpful data Total number of full- Total annual payroll time employees costs (pre-tax) Employee turnover rate Stock price history for for past 2-3 years (with as the past 2 years much detail as possible)
Slide 26: Any questions so far?
Any questions so far?
Slide 27: So what questions should I be asking?
So what questions should I be asking? About my stock • What percentage of stock option grants are options plan: completely vested? • For the stock options we grant, how many are cancelled due to employee resignation? • What was the average gain for an employee who was completely vested in their stoc
Slide 28: So what questions should I be asking?
So what questions should I be asking? About my RSU plan: • How many RSU’s never matured (i.e., they were granted but did not serve their retention purpose)? • What was the cost of the RSU’s granted during the past year? • How many shares were transferred to employees as a result of the RSU’s vesting
Slide 29: So what questions should I be asking?
So what questions should I be asking? About my ESPP: • Do my employees understand the plan and are they enrolling to participate? If not, why? • How much money is the company collecting versus the cost of the plan (administrative costs, plan expense)? • Are employees holding the shares after the pur
Slide 30: Case Study
CASE STUDY
Slide 31: Case study – Czarina Industries
Case study – Czarina Industries • Midsize, public company based in Omaha. The stock price is relatively flat for the past 3 years, with no sizable appreciation in stock price. The company pays a generous annual dividend ($4.00/share). • Only senior management receive RSU’s. The company has stopped g
Slide 32: Suggestions for Czarina Industries
Suggestions for Czarina Industries • Increase the discount of Redesign the RSU plan Implement a stock the ESPP to 15% to for executive ownership program for encourage more employees to participate. management so that senior executives. • Set aside a budget to executives receive 25% communicate the p
Slide 33: What else can you do to ensure you are in check?
What else can you do to ensure you are in check? Join industry groups Perform an independent Work closely with like GEO, NASPP, CEP, employee stock plan experts like Nua Group NCEO satisfaction survey Get statistical analysis Attend various industry events from your administrator (webinars, conferen
Slide 34: Upcoming events
Upcoming events This webinar has been recorded and a link to it and the presentation will be sent to you. Join our next events: Computershare ESPP Day Conference Nua Group will be speaking at the February 8, 2018 | New York, NY GEO International Conference in www.computershare.com/esppday Orlando, F
Slide 35: Get in touch!
Get in touch! Carine Schneider Carmen Anderson Nua Group Computershare [email protected] [email protected]
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