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NEWS
13 September 2023
SKY-HIGH CEO PAY IS IN FOCUS AS WORKERS EVERYWHERE ARE DEMANDING HIGHER WAGES
article

Daniele Kaye, Andrea Hsu

Executive pay
Finance, tax and accounting
Executive plans
USA

Union demands for higher wages and addressing CEO-worker pay disparity are at the forefront in negotiations with Big Three automakers, potentially leading to a strike by United Auto Workers (UAW) members if not met. UAW is proposing a 40% wage increase over four years. CEO-worker pay gap highlighted.

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NEWS
1 August 2023
CORPORATE TAX BREAKS AND EXECUTIVE COMPENSATION
article

Aeaweb, Eric Ohrn

Executive pay
Finance, tax and accounting
Executive plans
USA

This article analyzes the effect of two corporate tax breaks, bonus depreciation and the Domestic Production Activities Deduction (DPAD), on executive compensation in publicly traded US firms. The author finds both tax breaks significantly increase executive compensation. For every dollar a firm benefits from the tax breaks, compensation of the firm's top five highest-paid executives increases by $0.17 to $0.25. The tax breaks increase compensation primarily in firms with weaker governance structures, suggesting the compensation response is driven by executive rent extraction.

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GAME ON WITH THE GLOBAL SHARES: PUT YOUR MACRO-ECONOMICS KNOWLEDGE TO THE TEST

It’s share plan chutes and ladders.

People can find financial concepts boring – that’s why you need to get them engaged and excited. Consider how you would speak to your employees about the effects of macro-economics on their stock plans? Or how to make sure that the “need-to-know” details are presented in an informative, educational and engaging way? This is a session with a difference and will focus not just on the importance of knowledge sharing to help create financial wellness for your workforce, but how you can find interesting ways to communicate and engage with employees.

Creating an engaging and reflective forum, we will get the audience involved in the discussion by beginning the session with a game, where the audience will have their own understanding of specific macro-economic concepts put to the test. One side of the room will be against the other and for each topic accurately explained by a team, they will move forward one space on the board. If the team doesn’t know an answer, they’ll move backwards, representing the setback a lack of knowledge can have on their employees.

From inflation, to volatility, ROI or AMT, and 10B5-1 plans, we’ll be covering the fundamentals to ensure the audience leaves this session better equipped to support their employees in understanding how macro-economics might impact their equity compensation. Following this, our panel will move on to look at practical solutions to educate your workforce, with a particular focus on video libraries as an interactive hub for educational resources.

Speaker/Author

SPEAKERS: Chris Dohrmann, FGE,  Global Shares - a J.P. Morgan Company; Ryan Ross, Aon

Event date
Thursday, 26 Oct 2023, 14:30 - 15:20
Plan type
Country
Breakout series
IN-PERSON CHAPTER EVENT
18 October 2023, 12 - 3:30pm EDT
GEO NEW YORK/BOSTON CHAPTER MEETING
NY CHAPTER

SPEAKERS: LEANN BALBONAKPMG; ASHRA JACKSON, KPMG ; AMY REINADELOITTE; MIRIAM KRAWIECDELOITTE; EMILY CERVINO,  FIDELITY; GRANT PETERSON, AON; JEREMY BORAKSFIDELITY

USA

The GEO New York and Boston Chapters are pleased to present this half-day chapter meeting across Philadelphia, New Jersey, New York and Boston. We are excited to offer two sessions that are sure to inform, educate, and spark new ideas for your plan designs, and with speakers across all the locations, no matter which city calls to you, you’ll have a front row seat for the action.

SESSION ONE: 
Fresh ideas to keep your stock plans in style

Stagnation stinks!  With a constantly evolving workplace landscape, changing needs of employees and employers facing new challenges every day, stock plan stagnation can leave you unprepared.  Join these stock plan experts to explore new ideas for your stock compensation radar.

Key learning points:

  • Modernization strategies to enhance stock programs, reduce costs, promote equity, differentiation, and prepare for future challenges, including M&A
  • How to evaluate automatic exercise at expiration,  and how you can get a head start on T+1 readiness with prior day close.
  • Discover the role that LTI plays in gender pay gap,
  • ...and more.

SESSION TWO:
Industry updates from the front lines

This great discussion with representatives from Deloitte and KPMG will explore tax, regulatory, process and trends they are seeing from their desks.  These sage professionals will bring their experience and thought leadership to the table to consider for your incentive programs.

Key learning points:

  • Discuss equity industry trends we are seeing.
  • Review the regulatory and legislative views that are affecting the plan design landscape.
  • The rising trends that affect people, processes, and the current technology

Agenda:
12:00  to 12:30 – Registration, welcome and lunch
12:30 to 1:30 – Session one - Fresh ideas to keep your stock plans in style
1:30 to 2:30 –Session two - Industry updates from the front lines
2:30-3:30 - End of simulcast and table top discussions

*Please indicate any dietary requirements in your registration as lunch will be provided. 

We will be holding a simulcast for our chapter meeting, to give you more location options so you can attend. 

MASTERING THE EQUITY PLAN SHAREHOLDER APPROVAL PROCESS: FROM SOUP TO NUTS

This insightful session offers a step-by-step guide to securing shareholder approval for new or amended equity plans. Gain essential insights on the recommended timeline, project plan, and key stakeholder roles. 

Key learning points:

- Navigating key developments: Stay informed about the latest developments affecting equity plans and the shareholder approval process, including proxy advisor and institutional shareholder voting policies.

- Best practices and compliance: Discover best practices and essential updates for equity plans in light of recent legal, tax, and governance changes, ensuring alignment with regulatory requirements.

- Effective communication and execution: Learn strategies for effectively communicating material plan changes to executives and gaining board buy-in. Explore proxy disclosure considerations, including addressing potential stockholder risks. Additionally, delve into unique considerations related to ESPP approval and post-shareholder approval action items that demand attention.

Speaker/Author

Sinead Kelly, Baker McKenzie
Victor Flores, Baker McKenzie

Event date
Wednesday, 25 Oct 2023, 11:40 - 12:30
Country

THE INFLUENCE OF EQUITY GRANTS ON SAY-ON-PAY SHAREHOLDER SUPPORT

In today's corporate landscape, shareholder opposition to compensation proposals is on the rise. This has elevated the importance of shareholder engagement in executive compensation decision-making. In 2022, median support for say-on-pay proposals hit an all-time low, with a record number of companies receiving less than 70 percent investor backing. Equity pay, a significant part of executive compensation, often plays a pivotal role in shaping shareholder sentiment. Consequently, compensation committees are increasingly evaluating strategies to address or preempt shareholder discontent.

Our expert panel will dive into these critical dynamics and examine a compelling case study illustrating how a company addressed low shareholder support attributed to its equity compensation practices, offering practical insights into real-world challenges and solutions.

Key learning points:

  • Compensation committee responses: Explore how compensation committees respond to low shareholder support on say-on-pay proposals, including the common drivers behind diminished support and the resultant impact on voting outcomes in subsequent years.
  • Effective shareholder engagement: Learn from companies that have faced historically low support levels and discover the strategies and practices that have enabled them to rebound through more effective shareholder engagement.
  • Impact of responsiveness: Understand the significance of responsiveness in compensation decisions, spanning from low to high levels, and how these levels can directly influence shareholder support and overall company performance.

 

 

CPE CREDIT HOURS: 1.5*

Field of study: Specialized Knowledge
Levels: O
Delivery method: Group live
Advanced preparation: None

CEP Continuing Education (CE) credit:1.25 credits

Please visit our Continuing Education and Event Policies pages for more information.

Speaker/Author

Valeriano Saucedo, ISS Corporate Solutions
Carmen Luk,  ISS Corporate Solutions

Event date
Wednesday, 25 Oct 2023, 05:45 - 06:35
Plan type
Country

LOOKING FORWARD, LOOKING BACK: A YEAR WITH PAY VERSUS PERFORMANCE AND THE ROAD TO MANDATORY CLAWBACK POLICIES

As we approach the close of 2023, join our panel discussion for insights into the first year of Pay Versus Performance disclosure regulations and the imminent Mandatory Clawback policies. These policies, though distinct, share a common goal: enhancing the equitable distribution of equity compensation. 

Join our expert panel for a comprehensive overview of the evolving landscape of equity compensation policies and their impact on corporate compliance.

Key learning points:

- Reflecting on Pay Versus Performance: Gain insights into the challenges and progress made in implementing the SEC's Pay Versus Performance Disclosures. Real-life examples will illustrate successes and challenges in compliance, offering valuable lessons.

- Preparing for mandatory clawback: Discover how listed companies are gearing up for the forthcoming mandatory clawback policy, set to take effect on December 1, 2023. Learn about the financial reporting implications and the reporting requirements for compensation recovery procedures in annual reports.

- Applying lessons learned: Explore the practical lessons from the Pay Versus Performance experience and how they can inform the design and execution of the Mandatory clawback policy. Gain a comprehensive understanding of best practices to ensure compliance with these regulations and future developments.

Speaker/Author

Chris Dohrmann, FGE, Global Shares - a J.P. Morgan company
Michael Gorski, Semler Brossy
Sinead Kelly, Baker McKenzie

Event date
Wednesday, 25 Oct 2023, 09:30 - 10:30
Plan type
Country

GLOBAL EXECUTIVE COMPENSATION TRENDS

Delve into the dynamic world of global executive compensation trends, with a spotlight on the role played by equity compensation. Explore how these trends align with your organization's objectives and challenges, including talent attraction and retention, program management, and plan design.

Key learning points:

  • Strategies for attracting and retaining top global executive talent through equity compensation.
  • Effective program management and implementation considerations.
  • Leveraging equity compensation in plan design to align with global executive compensation trends.

 

 

CPE CREDIT HOURS: 1.5*

Field of study: Specialized Knowledge
Levels: O
Delivery method: Group live
Advanced preparation: None

CEP Continuing Education (CE) credit:1.25 credits

Please visit our Continuing Education and Event Policies pages for more information.

Speaker/Author

Kelly Davis, KPMG
Robyn Shutak, Infinite Equity

Event date
Wednesday, 25 Oct 2023, 08:30 - 09:30
Country
ARTICLE
18 July 2023
UNITED STATES – SOURCING OF MULTI-YEAR COMPENSATION FOR SOCIAL SECURITY TAX
external article

SOURCE: KPMG

USA

 

The U.S. IRS released a memorandum, offering guidance on how to source income from restricted stock units (RSUs) for U.S. Social Security (FICA) purposes when the vesting period spans multiple tax years. This guidance provides employers with some clarity on adapting income tax regulations to apply to FICA tax, reducing uncertainty and potential issues during IRS audits. While the memorandum is specific to RSUs granted to U.S. citizens and residents, its principles can be applied more broadly to other forms of multi-year compensation, nonresident aliens, and different types of employers.

ARTICLE
2 June 2023
EQUITY COMPENSATION FOR START UPS
external article

SOURCE: Cake Equity

USA

This article provides an overview of equity compensation for startups, explaining how it aligns employee interests with the company and helps attract and retain talent. It covers various types of equity compensation plans, their benefits, and considerations, highlighting the importance of careful planning and expert guidance to create a suitable compensation package.