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United States
Certified Equity Professional Institute to Develop Guidance on Risk and Appropriate Controls for Stock Plan Administration
15 September 2006
Source: CEPI
Santa Clara, September 13, 2006 – The Certified Equity Professional Institute (CEPI) at Santa Clara University, the only certification body for equity compensation professionals, today announced its intent to undertake a landmark research project designed to provide guidance on risk and appropriate controls for stock plan administration. Fidelity Investments, which offers stock plan administration services, is funding the project.
“Recent compliance changes, such as FAS 123R, have added complexity to this area. It is more important than ever to understand the risks and appropriate controls,” said Emily Cervino, Director, CEPI. “What used to be a fairly low-risk procedure has become increasingly complex, putting both companies and their outside auditors at risk for potential misstatements in their financial statements. CEPI is undertaking this research initiative to establish clear and comprehensive guidelines. These guidelines will help ensure companies are correctly identifying operational gaps and instituting appropriate controls.”
Scheduled to be published in draft form in January of 2007, the research will explore issues associated with stock options granted to U.S. employees that vest over time, areas of risk and appropriate controls to mitigate the risk.
Subsequent research will address non-U.S. employees, performance vesting and other types of equity awards.
“As the only certification body for equity compensation professionals, the CEPI is in a unique position to provide industry guidance on identifying potential operational gaps and instituting appropriate controls,” said Don Holborn, Executive Vice President, Fidelity Stock Plan Services. “We believe this effort is a critical first step in helping companies discern and establish best practices around stock plan administration.”
About the Certified Equity Professional Institute
The Certified Equity Professional Institute (CEPI), at Santa Clara University, is the only certification body for equity compensation professionals. The CEPI curriculum covers accounting, corporate and securities laws, taxation, and administrative and contractual considerations, ensuring that CEP designees have achieved a required level of expertise in all of the relevant areas of equity compensation. More than 65 percent of the Fortune 1000 have CEPs supporting their stock plans.
About Santa Clara University
Santa Clara University, a comprehensive Jesuit, Catholic university located in California’s Silicon Valley, offers its 8,397 students rigorous undergraduate curricula in arts and sciences, business, and engineering, plus master ’s and law degrees. Distinguished nationally by the second highest graduation rate among all U.S. master’ s universities, California’s oldest higher-education institution demonstrates faith-inspired values of ethics and social justice. For more information is available on www.scu.edu.
Certified Equity Professional Institute, Santa Clara University
500 El Camino Real, Santa Clara, CA 95053-0400
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