August 22, 2017
Say Yes to the Vest
Our popular “Meet the Speaker” series, featuring interviews with speakers at the 25th Annual NASPP Conference, is a great way to get to know our many distinguished speakers and find out a little more about their sessions in advance of the Conference.
For today’s “Meet the Speaker” interview, we feature an interview with Maria Acevedo-Pichardo of AST Equity Plan Solutions, who will lead the session “Say Yes to the Vest.” Here is what Maria had to say:
NASPP: Why is vesting of RSU awards a timely topic now?
Maria: Vesting…we know it is coming and there should be no surprises when the date arrives. However, we all know there are tiny wrinkles that show up on the event date…just like a wedding crasher.
With the upcoming changes to the trading settlement cycle is it extremely important for issuers to tighten controls around vesting procedures when a sale is involved in the vesting process.
Also, there has been some confusion around what the ASC 718 share withholding rules allow participants and issuers to do at the time of vesting as it relates to the tax rates to apply.
NASPP: What is one best practice companies should implement for their vesting events?
Maria: Prepare, prepare, prepare…
Update tax rates and earnings on the day leading to the event. This will prevent—as much as possible—post vesting corrections that could potentially delay settlement and/or the delivery of shares.
NASPP: Do you have any vesting date horror stories?
Maria: Vesting of a large broad-based Plan prior to the age of online transactions where the participants had to fax the trade request for the shares. The morning of the vesting day, as we got into the office there was paper everywhere and the fax machine was waiting to be fed more paper. It took many refills to print all the paper requests… and then trying to reconcile all the papers received was a challenge to say the least.
NASPP: What is your superpower?
Maria: Being a mom…that has to be on the list 🙂
Don’t miss Maria’s session, “Say Yes to the Vest,” at the NASPP Conference!
About the NASPP Conference
The 25th Annual NASPP Conference will be held from October 17-20 in Washington DC. This year’s program features close to 100 sessions on today’s most timely topics in stock and executive compensation; check out the full agenda and register today!