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 Catrice Cooke of Discovery Communications, who will lead the session “Emails, and Phone Calls, and Webinars … Oh My!” Here is what Catrice had to say:
NASPP: Why do you feel strongly about participant education?
Catrice: Based on an online survey from 2016, participants who are more knowledgeable about their stock plans have higher satisfaction, are more loyal, and have a higher sense of ownership in the company. Knowledge is power and we must equip our employees to make good decisions.
NASPP: What is one action should companies be taking now?
Catrice: Developing innovative and creative methods to educate employees via the web, video, email, print, and in-person meetings.
NASPP: What is the silver lining to participant education?
Catrice: There is a wealth of knowledge available from a multitude of sources that can aid your employees in becoming more knowledgeable about equity plans. Leveraging internal and external resources can provide the best mix of information for employees.
NASPP: What is your favorite restaurant or tourist attraction in DC?
Catrice: My favorite restaurant in DC is Carmines in Penn Quarter. For happy hour, they have the best frozen cosmo’s and wings. I always leave with a smile on my face!
Don’t miss Catrice’s session, “Emails, and Phone Calls, and Webinars … Oh My!” 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!
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 Raul Fajardo of Certent, who will lead the session “Top Five Equity Accounting Takeaways.” Here is what Raul had to say:
NASPP: Why do NASPP Conference attendees need to know about accounting?
Raul: Accounting for equity compensation is a key part of the equity grant cycle. Learn how the different types of equity grants are accounted for from the time they are granted to the time they are exercised, released, purchased or cancelled. Whether you are an accountant or not, equity compensation professionals need to know the basics of financial reporting for equity grants. From valuation to expensing to earnings per share to financial reporting disclosure of equity compensation to tax reporting, this session covers the whole accounting cycle.
NASPP: What is one best practice companies should implement?
Raul: Companies should have a checklist for every step of the equity grant cycle and make sure that all grants are accounted for properly. For example, when an equity grant is made, that grant has to be valued and expensed over a certain period. That grant also has EPS and financial disclosures and tax implications and should be included in the checklist.
NASPP: What is the silver lining to accounting for equity awards?
Raul: You don’t need to be an accounting professional to learn the basics of equity compensation accounting. Every company that grants equity has to deal with accounting for it, so you are not alone.
NASPP: What is your favorite memory from a past NASPP Conference?
Raul: Learning isn’t confined to attending the sessions. Networking with fellow equity compensation professionals is a key part in getting the most out of the conference. My favorite memory is attending a sponsored event and having a drink with a colleague, only to discover that we faced the same challenges in our jobs. That conversation turned into consulting with each other whenever we faced a new challenge and helping each other whenever the job became difficult.
Don’t miss Raul’s session, “Top Five Equity Accounting Takeaways,” 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!
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 Steve Kline of Willis Towers Watson, who will lead the session “Selecting Effective Measures and Goal-Setting Within Incentive Plans.” Here is what Steve had to say:
NASPP: Why is goal setting important for incentive plans?
Steve: Say-on-pay has been with us for several years now. The primary benefit of this environment is that most of the problematic executive compensation practices that concern investors have been cleaned up. As a result, effectively aligning pay and performance is the number one issue in executive compensation. What’s more, one is never finished solving this riddle, as business conditions present new and different challenges each year.
Arguably, the heightened sensitivity due to say-on-pay has tilted the scale toward investors. So companies must remain vigilant in setting their incentive plan goals and payouts so that they provide meaningful motivation and reward for participants while aligning pay with performance over the long-term.
NASPP: What is a common mistake companies make with their incentive plans?
Steve: Assuming that the incentive plan design process is substantially complete when the ink is dry on the financial budget. Not all measures warrant a +/-20% range around the target, and 50% – 200% payouts may not always make sense. Compensation and HR professionals can add more insight into how threshold and max goals and corresponding payouts should be calibrated in order to optimize the pay package.
NASPP: What is the most innovative approach you’ve seen to goal setting?
Steve: I daresay the predictive performance model (PPM) that my colleagues at Willis Towers Watson and I have developed. Whereas much of the analysis around pay and performance has been tantamount to looking through the rearview mirror, our predictive analytics look out the front windshield to provide insight into probable future performance, which helps us understand likely incentive payouts. And when you stack all the incentive plans up, you can gain insight into the overall profile of the pay package, which helps in managing weightings on measures and tinkering with leverage as well as goals and target payouts.
NASPP: What is your favorite memory from a past NASPP Conference?
Steve: My most vivid memory of a prior NASPP conference is the opening of the October 2001 conference in New Orleans. Webb Bassick was the keynote speaker to begin the conference. It was just weeks removed from 9/11, and for most of the 1000+ in attendance, it was the first plane trip since then. It was a remarkable show of perseverance, as we, and the nation at large, went back to work, but forever changed.
Don’t miss Steve’s session, “Selecting Effective Measures and Goal-Setting Within Incentive Plans,” at 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!
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!
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 Bob Grayson of Tapestry Compliance, who will lead the session “Take a Trip with TripAdvisor: A Journey of Discovery.” Here is what Bob had to say:
NASPP: Why do you feel strongly about global stock plan compliance?
Bob: Any company which operates an incentive plan outside its own home jurisdiction needs to avoid risks overseas. There are lots of potential risks—some relate to tax but others relate to a whole range of other regulations—for example foreign exchange; securities law; data protection and labor law. Companies want to manage their risk and they want to do it in an efficient, value for money way. I feel strongly that companies need advice which makes the process as simple as possible and which reduces risk at a reasonable cost.
NASPP: What is a common mistake companies make with their global stock plans and how can they avoid this?
Bob: The most common mistake companies make is to assume that if they act in accordance with US practice then that will work in other countries. Sometimes it will—but sometimes it won’t! Although all countries in the world have companies and incentive plans there are lots of things which are different—in some countries you can “hire and fire” in other countries you can’t. In some countries you have to withhold—in some counties you don’t. Mistakes are usually made because your assumption is wrong. Companies need to systematically check their assumptions so that they comply with all tax and regulatory rules globally.
NASPP: Is administering a global stock plan as impossible as it looks?
Bob: Operating a global plan may look like an impossible task—there is so much information and so many differences between countries. However—don’t worry! Companies have been doing global plans since about 1980—so we are very experienced and know which are the important points. A lot of the advice is customized on our databases so that it is presented in a cost-effective and efficient way. Of course there are still difficulties—but, with the right advice, you can do it!
NASPP: What is your superpower?
Bob: Keeping it short and simple!
However complicated a problem is I believe it can be explained in less than a page. Clients are not generally interested in all the detail—they want sound, clear, risk based advice based on experience. We can provide all the detail if you want it—but we can also give you a clear and simple choice and will support you all the way!
Don’t miss Bob’s session, “Take a Trip with TripAdvisor: A Journey of Discovery,” 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!
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 Kevin Hassan of PwC, who will lead the session “Financial Reporting & Accounting Playbook: Winning Plays from the Pros.” Here is what Kevin had to say:
NASPP: Why do NASPP Conference attendees need a financial and accounting playbook?
Kevin: This is something that all companies that supply equity compensation to employees need. Auditors place keen focus on the compensation programs based on the scrutiny from regulators and institution investors. We will help guide a company through the process to ease any concerns as well as potential problems with the process.
NASPP: What is one best practice companies should implement?
Kevin: When issuing equity, ensure that all parts of the company (tax, HR, legal, plan administration, accounting/finance, local management) are active participants in the process to ensure accuracy as well as no surprises.
NASPP: What is the silver lining here?
Kevin: You can correct some potential flaws in your existing process and help with your upcoming audit season.
NASPP: What is your superpower?
Kevin: None!
Don’t miss Kevin’s session, “Financial Reporting & Accounting Playbook: Winning Plays from the Pros,” 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!
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 Carly Sanfilipo of Aon, who will lead the session “Valuation 101: A Beginner’s Guide to Equity Valuation.” Here is what Carly had to say:
NASPP: Why is equity valuation particularly timely right now?
Carly: Equity valuation is eternally timely! There are always new people that join our industry. And even if you’re an industry veteran, it’s wise to periodically review your valuation practices to ensure that they are still applicable. What was appropriate for your company three years ago may no longer be!
NASPP: What is a common mistake companies make when valuing awards and how can they avoid this?
Carly: I often see companies blindly use their own historical data to calculate their expected life assumption. There are many reasons why past behavior may not be indicative of future expectations. You should always analyze your data with this in mind. Have plan provisions changed? Have these historical options spent time both in-the-money and underwater? Has your optionee population changed? How have RIFs affected behavior? And the list goes on…
NASPP: What is an innovative solution you’ve seen to address a challenge in valuing equity awards?
Carly: When newly public companies rely on peer volatility, it is wise to prepare for when you will use your own historical or implied volatility. One elegant solution: time-weight peer volatility and your own historical volatility. Not only does this naturally phase out your reliance on peers, but it also avoids the inevitable audit question of “why are you changing methods NOW?”
NASPP: What is your favorite memory from a past NASPP Conference?
Carly: Hands down, pig races at the Aon booth in the exhibitor hall. For some reason, witnessing dozens of grown adults joyfully shout at fluorescent mechanical stuffed animals never gets old. Why does Aon do pig races, you may wonder? Just ask someone wearing an Aon jersey!
Don’t miss Carly’s session, “Valuation 101: A Beginner’s Guide to Equity Valuation,” 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!
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 Dayana Abreu of E*TRADE Financial Corporate Solutions, who will lead the session “Reconcilable Differences: Remedies for Reconciliations Across Processes & Transactions.” Here is what Dayana had to say:
NASPP: Why do NASPP Conference attendees need to know about data reconciliation?
Dayana: Data reconciliation is a major component to stock plan administration. Whether you are reconciling the data as a part of your financial reporting, making updates to the data or transitioning to a new record keeping system, being able to know how to efficiently reconcile your data will help you save time and money.
NASPP: What is one best practice companies should implement?
Dayana: Companies should always be in the habit of ensuring their data is maintained, as well as implementing an audit process to help avoid issues with misrepresentation of the data or any cleanup work prior to a major event.
NASPP: What is the silver lining to data reconcilation?
Dayana: Once you have come up with a scalable and reusable template for your reconciliation, any subsequent need to reconcile will be significantly easier.
NASPP: What is your superpower?
Dayana: My razor sharp focus and attention to detail on any task I come across.
Don’t miss Dayana’s session, “Reconcilable Differences: Remedies for Reconciliations Across Processes & Transactions,” 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!
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 Ryan Strong of Fidelity Stock Plan Services, who will lead the session “Mapping Out Mobility: Perspectives Across the Big 4.” Here is what Ryan had to say:
NASPP: Why is mobility a timely topic right now?
Ryan: Mobile employees continue to present challenges for companies issuing equity and compliance with a multitude of jurisdictions imposing different rules is increasingly difficult. Understanding the rules and devising right-sized solutions for your company is more important now than ever as regulators continue to ramp up their oversight and enforcement.
NASPP: Any tips for companies just getting started with their mobility compliance?
Ryan: Tackling the problem of mobile employees is a massive undertaking. You can’t solve for everything at once, so prioritizing employee populations is really important. Establishing an overarching plan and setting realistic short and long term goals is critically important to greater compliance.
NASPP: What is the silver lining to mobility compliance?
Ryan: We have the Big 4 to help us! Our panel brings a wealth of expertise and has just about seen it all when it comes to mobile employees and the challenges facing issuers. Hearing their perspectives side-by-side is guaranteed to broaden yours!
NASPP: What is your superpower?
Ryan: My 3-year old niece will tell you it’s reading “The Cat in the Hat”—my secret: doing all the voices and being as silly as possible. I’m still working on the NASPP submission…
Don’t miss Ryan’s session, “Mapping Out Mobility: Perspectives Across the Big 4,” 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!
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 Rob Miceli of Merrill Lynch, who will lead the session “Further on up the Road: ASC 718 Compliance in 2017.” Here is what Rob had to say:
NASPP: Why do NASPP Conference attendees need to know about the current landscape for ASC 718 reporting?
Rob: An optimized equity plan administration solution in 2017 has to include comprehensive reporting in support of the share-based compensation accounting requirements associated with the awards that are issued.
In driving toward a solution that meets any particular issuer’s specific financial reporting requirements, it is helpful to be mindful of both the broad and nuanced issues relating to award characteristics themselves, data organization or storage issues, transactional occurrences, or other unique reporting requirements that can create complexity in the financial reporting area.
Whether in the context of examining current processes in an effort to optimize the status quo, or in terms of evaluating the marketplace for tools to assist with financial reporting, this Power Session will provide attendees with a practical framework for thinking about what characterizes an optimal ASC 718 compliance process—both in general and in the context of specific issues that may be relevant to their particular organization.
NASPP: How can companies improve their ASC 718 reporting processes?
Rob: As with many areas within the equity plan administration landscape, with respect to successfully supporting the financial reporting requirements of equity plans, the devil is often in the details.
When considering the reporting solutions available for ASC 718 compliance, an extremely helpful exercise can be to slow the process down and, as early in the process as possible, ensure the demonstrations and discussions that are occurring are grounded in a level of detail that allows all parties to determine with precision whether the firm-specific reporting requirements in question can be met.
While the accounting standards stipulate—for the most part—somewhat rigidly what our requirements are, the particular share-based compensation accounting needs that can arise from company to company can be quite specific. Converting to a new accounting platform is a non-trivial task, so if an implementation project is going to be undertaken we better be sure the end result will provide precisely what is required.
One specific best practice step can be inquire as to whether sample data following a series of specific transactions and examples can be simulated in the solution environment that is being reviewed so that a relevant, apples-to-apples analysis can be conducted.
NASPP: What is the silver lining to ASC 718 reporting?
Rob: As we are now more than 10 years from the adoption date of FAS 123(R), we are in a position to consider quite a bit of information as we evaluate how best to handle our equity plan reporting requirements.
Different tools and solution approaches are out there and specific issues both that are complex and that would be classified as issues we would expect to be cleanly supported in almost every instance are known.
Being aware of the more prevalent issues that may be out there and the different solution approaches that do exist can help any issuer develop an ASC 718 compliance process that is optimal for them.
NASPP: What is your superpower?
Rob: At the moment, with a two- and a four-year old at home, I am channeling all of my superpowers into my toddler negotiating skills. I’m pretty good but if anyone has some best practice advice in this area, please let me know.
Don’t miss Rob’s session, “Further on up the Road: ASC 718 Compliance in 2017,” 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!