Community Corner

Computershare Enhances Performance Awards Functionality for Equity Plan Clients

August 21, 2014 Computershare(ASX: CPU), the world's leading provider of investor and equity plan services, announced today that its US Plan Managers business has enhanced its Employee Ownership System platform with innovative features to support performance-based restricted stock units and awards.

One of the hottest topics in the equity compensation industry today is performance plans. According to the 2013 Domestic Stock Plan Administration Survey published by Deloitte and the NASPP, 87 percent of the responding companies have plans that can offer performance awards, a 22 percent increase from the prior survey. These structures seek to encourage employee loyalty and the achievement of specific business goals.

“Individual and institutional investors demand increased accountability from company executives to align shareholder and employee interests, as well as a long-term focus,” stated Kevin Brennan, president, US Plan Managers. “Computershare is providing performance award enhancements to ensure our systems meet and exceed the needs of our clients.”

Clients now have the ability to apply an interim performance measurement for restricted stock award/restricted stock unit grants with performance vesting schedules. The same measurement percentage will be available for price modeling and display on the participant interface and in the Stock Plan Management and Reporting Tool (SMART).

New performance award features include:

  •  Rounding rules that can be applied to performance grants will be expanded

  •  Dividend equivalent reinvestment for restricted stock grants with performance vesting

  •  Cash Dividend accrual for restricted stock awards, with or without performance vesting criteria

Computershare’s US Plan Managers offers full-service administration for all types of employee plans. For more information on the full range of services offered, please visit cpm.computershare.com or call 888-404-6333.

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