The NASPP Blog

It’s Baker & McKenzie week here in the NASPP Blog!  On Tuesday we featured an interview with June Anne Burke and for today’s “Meet the Speaker” interview, we feature an interview with Denise Glagau, also of Baker & McKenzie, who will lead the session “Dividends, Equivalents and Stock Awards.” Here is what Denise had to say:

NASPP: What are a few key areas your panel will address with respect to your topic?

Denise: Key areas the panel will address include:

1. Tax and social insurance withholding and reporting on dividend/dividend equivalent payments;
2. Pros and cons of making dividend/dividend equivalent payments on unvested awards currently versus accruing the payment until vesting of the underlying award;
3. Advantages and disadvantages of making dividend/dividend equivalent payments into a brokerage account versus paying through local payroll;
4. How and why equity awards may be adjusted to account for a special dividend: and
5. Tax and regulatory considerations arising from the adjustment of equity awards due to a special dividend, including special considerations for tax-qualified awards.

NASPP: What is the biggest challenge companies face in administering dividend programs for awards?

Denise: One of the biggest challenges companies face in this area is administering payment of dividends/dividend equivalents on equity awards in an efficient and consistent manner while also limiting exposure for tax withholding/social insurance obligations around the globe. A related challenge is how to manage tax withholding/social insurance obligations on dividend/dividend equivalent payments where there are not similar obligations for the underlying award.

NASPP: What is the silver lining to paying dividends on awards?

Denise: The silver lining of this topic is that the payments we will be talking about provide a great benefit to award holders and if the proper legwork is done upfront and this benefit is communicated effectively, these payments themselves can be perceived as an added incentive to award holders without much work on the part of the issuer.

NASPP: What is your secret (or not-so-secret) superpower?

Denise: My (not-so-secret) superpower is that I do not need much sleep. I get this from my dad which used to be really annoying as a teenager trying to sneak in and out of the house–the man was always awake no matter what time it was–but now I have to thank him for this trait as it comes in handy in balancing a busy global equity practice and a satisfying family and personal life!

About the NASPP Conference
The 21st Annual NASPP Conference will be held from September 23-26 in Washington, DC. This year’s program features 60+ sessions on today’s most timely topics in stock compensation; check out the full agenda and register today! You don’t want to miss Denise’s session, “Dividends, Equivalents and Stock Awards.”