October 7, 2013
Here’s what’s happening at your local NASPP chapter this week:
Seattle: Jim Sillery, and Kathi Myers of Buck Consultants present “Achieving Equity Effectiveness – A New Perspective.” (Wednesday, October 9, 7:30 AM)
Orange County: Fred Whittlesey ofCompensation Venture Group and Jon Burg of Radford present “Value and Valuation: Making Sense of Long-Term Incentive Data.” (Thursday, October 10, 11:30 AM)
Tags: NASPP, NASPP chapter meetingsJune 11, 2013
Take a Tour of the NASPP
In addition to Executive Director, I have a new role here at the NASPP: tour guide. I’ve recorded an 8-minute tour of the NASPP website to help our members find their way around. Some of the things you’ll learn on the tour include:
The Beginner’s Guide to the NASPP
The tour is part of our new “Beginner’s Guide to the NASPP.” The Beginner’s Guide collects our most popular resources on a single page to make them easy to find. Here are some of the things you’ll find in the Guide:
Check out the Guide and take the tour today!
– Barbara
Tags: NASPP, NASPP WebsiteFebruary 12, 2013
Welcome to the Newest NASPP Staff Member
I’m very excited to announce that Kathleen Cleary has joined the NASPP as our new Education Director. Kathleen has close to 20 years experience in stock compensation and has experience developing trainings and educational programs. Some of you may have heard her present during the session “Tracking Disqualifying Dispositions: The Hunt for Tax Deductions” at last year’s NASPP Conference. She comes to us most recently from OptionEase (now Solium) and has also worked in stock plan administration at several issuers. Jen Baehr, Jenn Namazi, and I were all very impressed with her during the interview process and we think that she’ll be a great fit for our team.
Kathleen will be responsible for overseeing all of the NASPP’s educational programs, including:
Kathleen started in her new role last Friday and is already working on several of our upcoming programs. I hope you’ll join me in welcoming her to the NASPP.
Get to know Kathleen–check out her NASPP member profile.
Submit Your Member Profile; Win a Prize!
Submit your NASPP member profile by this Friday, February 15, and you’ll be entered in a drawing for a free registration to the CEP Symposium. You must include a picture with your profile to be eligible for the drawing.
NASPP members that have already submitted their profile can email Jenn Namazi to be included in the drawing (but you have to have provided a picture for your profile to be eligible for the drawing).
– Barbara
Tags: NASPP
December 18, 2012
This is my last blog entry of 2012, so I thought I’d have a little fun with it.
My Favorite Words
One thing I enjoy about working in stock compensation is that I get to use a lot of fancy words. Some of these words are so fun to say that I wondered if I could sneak them into my non-work conversations. Here are a few examples that you can use to impress your family and friends at holiday gatherings:
What are your favorite stock compensation terms? 10 pts to anyone who emails me a favorite word with an example of how to use it correctly in a non-work context.
Things To Do on the NASPP Website That Count as Work But Are More Fun Than Actual Work
Even thought it’s the end of the year, the week between Christmas and New Year’s can often be a little slow. Many folks are on vacation and those that remain behind can fall victim to a holiday-induced malaise. With that in mind, I have compiled the following list of things to do that count as work but are more fun than your actual job, just case you need it next week.
The Award for the Best Holiday Ecard…
Goes to Maslon Edelman Borman & Brand for being innovative, engaging, and touching all at the same time. Check it out today; the stories behind the words of wisdom are as interesting as the quotes themselves.
Happy Holidays
The NASPP Blog will be taking next week off to enjoy the holidays. I hope you all have a great holiday season and look forward to seeing you in the new year!
– Barbara
Tags: NASPP, NASPP WebsiteMay 15, 2012
Normally I like to highlight benefits that we offer to NASPP members, but today I’m writing about something we don’t have: data on grant sizes. It’s something I get asked about occasionally, just frequently enough that I think it would be nice to have blog entry I could point to that explains why we don’t have this data.
Why Doesn’t the NASPP Offer Benchmarking Data on Grant Sizes
We don’t offer this data because you can’t look at award sizes in a vacuum. You need to look at awards as part of the company’s overall compensation package and include cash-based compensation and other benefit programs in your analysis. Companies that pay heavily in cash are likely to use less stock compensation and vice versa. Thus, you don’t want to set award sizes based on peer data without also knowing how the cash compensation (including salary, commissions, bonuses, and other long-term incentives) paid by your peers compares to your own. Doing so could result in severely over-compensating or under-compensating employees.
The same consideration also should be given to other benefit programs. For example, I recently spoke with a company that was implementing a stock award program to replace the company match in their 401(k) program. Because their stock awards are designed to make up for a lack in their 401(k) benefit, I would expect them to grant larger awards to more employees than a similarly situated company that has a more robust 401(k).
Stock compensation should be a component of your overall compensation package–the goal is to figure out what your overall compensation package should be, including cash, stock, and other benefits, and then figure out how much of that overall package you want to be in stock.
While we, here at the NASPP, are the leading experts on stock compensation, I admit that we don’t know beans about cash-based compensation and other benefit programs. Because we don’t have the expertise to properly evaluate other compensation data, we have decided that it would be inappropriate–perhaps even irresponsible–for us to publish data on grant sizes.
Ultimately, determining guidelines for grant sizes isn’t a do-it-yourself project. It’s not quite as simple as just looking at some survey data. There are numerous questions as to how grants, particularly stock options, should be valued for compensation purposes (we’ll have a great session on this at this year’s NASPP Conference–stay tuned for more information when we announce the program later this month). The number of shares you have available in your plan and how amenable your shareholders will be to additional share allocations (which will in part depend on your shareholder demographics, as well as your overhang and burn rate) are additional factors to consider when deciding on grant sizes. You would not want to set guidelines that cause you to run out of shares before you’ll be able to get your shareholders to approve an additional allocation of shares to the plan. In addition, any survey data lags behind the market, sometimes considerably. This is an inherent part of the survey process; it takes time to collect the results, analyze, and publish them so that by the time the results are published, the market has already changed.
Once awards are granted, mistakes as to size aren’t easy to fix. I encourage companies to work with a compensation consultant who can provide the appropriate benchmarking from peer companies with similar compensation strategies and benefits and can suggest adjustments based on differences in your strategies and other benefits. In addition, a consultant can help you assess the value of your overall compensation package as it compares to your peers, determine the appropriate way to value your own options and awards, and provide input into how the market has shifted since the survey results you are looking at were published. Grant sizes are one of the single most important decisions you are going to make about your stock program; it’s worth the investment.
Correction
In last week’s blog entry (“News on the Proxy Advisors“), I got the name of ISS’s parent company wrong. Four times (at least I was consistent). It should have been MSCI (not MCSI). But don’t bother going back to look at it now to find the mistakes–I’ve fixed it.
NASPP “To Do” List
We have so much going on here at the NASPP that it can be hard to keep track of it all, so we keep an ongoing “to do” list for you here in our blog.
– Barbara
Tags: grant guidelines, NASPP, research, SurveyApril 24, 2012
Welcome to the Newest NASPP Staff Member
I’m very excited to announce that Jen Baehr has now joined the NASPP as our Programs Director. Jen has over a decade of experience in stock compensation, most recently at OptionEase and, before that, at Solium Transcentive. I’m sure that many of my readers know Jen from her presentations at past NASPP Conferences and other NASPP programs–Robyn Shutak, the NASPP’s Education Director, and I were pleased to present the “Reporting” webcast with her during our online program, “Financial Reporting for Equity Compensation.”
As Programs Director, Jen will be responsible for a variety of NASPP programs, including:
Jen started yesterday and has hit the ground running. I hope you will join me in welcoming her to the NASPP.
Global Equity Incentives Survey
I’m also excited to announce that the NASPP has teamed up with PricewaterhouseCoopers to offer the NASPP-PwC 2012 Global Equity Incentives Survey. The joint survey is the industry’s most comprehensive examination of global stock plan design and administration issues and will allow for year over year comparisons of compensation strategy and design, expensing, tax planning and compliance, global coordination, plan administration and employee communications.
Issuers must participate in the survey to receive the full results. NASPP members that have participated in past surveys know just how valuable the results are–easily well worth the cost of NASPP membership. Register to receive your login to the survey today–don’t wait; you only have until May 25 to complete the survey.
NASPP “To Do” List
We have so much going on here at the NASPP that it can be hard to keep track of it all, so we keep an ongoing “to do” list for you here in our blog.
– Barbara
Tags: NASPPOctober 4, 2011
Some of you may have noticed that NASPP Blog entries and the NASPP Question of the Week Challenge have been a little inconsistent lately. Well, with the addition of Jenn Namazi to the NASPP staff, things are going to get back on track around here.
The NASPP Welcomes Jennifer Namazi
I’m excited to report that Jennifer Namazi has joined the NASPP staff as our Editorial Director. Jenn will be responsible for maintaining the NASPP website, including the Question of the Week Challenge and the Compliance-O-Meter, as well as posting articles, alerts, and new portals, and generally keeping the website current.
In addition to the website, Jenn will blog once week (on Thursdays) and will write the “Administrators’ Corner” column in The NASPP Advisor.
Jenn most recently worked for Stock & Options Solutions and has also worked for Adaptec, Broadcom, and Sicor Pharmaceuticals, so she brings a wealth of experience to the NASPP.
Getting to Know Jenn
Many of you already know Jenn from her presentations at numerous NASPP Annual Conferences and in our online education programs. In fact, Jenn has been an active contributor to the NASPP for years now; here are just a few of her contributions:
I hope you’ll join me in welcoming Jenn to the NASPP staff and look for her inaugural blog entry this Thursday.
Conference Hotel Almost Sold Out
The 19th Annual NASPP Conference is quickly approaching and the Conference hotel is nearly sold out. The Conference will be held from November 1-4 in San Francisco. The last Conference in San Francisco sold out a month in advance–and that was without the reality of Dodd-Frank and mandatory Say-on-Pay hanging over our heads. With Conference registrations going strong–on track to reach nearly 2,000 attendees–this year’s event promises to be just as exciting; register today to ensure you don’t miss out.
Video Preview of “Did it Pass?”
Keith Bishop of Allen Matkins will lead the session “Did it Pass? Understanding Shareholder Voting Issues” at the 19th Annual NASPP Conference. Recently, Keith starred in a video preview of the session. Check it out!
NASPP “To Do” List
We have so much going on here at the NASPP that it can be hard to keep track of it all, so I keep an ongoing “to do” list for you here in my blog.
– Barbara
Tags: NASPPFebruary 17, 2011
If you follow the NASPP on Twitter or Facebook, then you already know when and where the NASPP’s 19th Annual Conference will be held!
As you know, the window for submitting speaking proposals for the Conference is open and I’m already excited. People are getting really creative this year and I can’t wait to see what will get chosen! Don’t worry if you’re still working through the details of your submissions; we won’t start the difficult selection process until after the window closes on February 28th. Also remember that one is never enough. Each company can submit up to three proposals–hedge your bets and make sure your company maxes out the limit. (Remember to communicate with your other departments so you don’t accidently go over three.)
Around this time of year, I get emails from NASPP members wanting to get the inside scoop on what presentation topics are most likely to get chosen. Honestly, the inside scoop is that there is no inside scoop. Our proposal submission site has a wealth of suggestions that will help you get on the list of speakers for the Conference this year. However, these are my personal top three tips:
Tip #1: Fly Low
Regardless of your topic, we like to see presentations that will give us specific practical guidance and in-depth coverage of relevant areas. Case studies make fantastic illustrations, especially if your panel includes more than one company with different experiences on the same issue.
Tip #2: Diversify
It works for investing and it works for a phenomenal presentation. If you want to cover a topic thoroughly, get at it from multiple viewpoints. We are particularly fond of panels that include more than one firm because of the different perspectives that can be offered. We also specifically give preference to submissions that include an issuer company (or two).
Tip #3: Turn Up the Heat
It goes without saying, but I’ll do it anyway. The NASPP loves hot topics! We want our Conference attendees to get exactly what they are looking for. We have a great list on our proposal submission site, but it’s by no means exhaustive. Don’t be shy about perusing the NASPP Discussion Forum to see what issues are buzzing there or polling your peers to find out what they are struggling with right now.
There are, however, some subtleties about the selection process. Many topics are so in demand that we receive multiple submissions with different ideas for covering them. Every year, we do see equally irresistible proposals for an essential topic. There are a few tiny things that could give you that special edge: have clever title, provide detailed topic points, and include a description of what additional materials you’ll be providing. Be flexible, too, because sometimes we may ask you to join forces with another panel to create a hybrid that offers the best of both.
Also, don’t be afraid of a topic that isn’t shiny and new. Some topics like plan administration or tax withholding and reporting never go out of fashion because they never cease to be a major focus for equity compensation professionals. If you have an innovative approach to an old challenge, we want to know!
Proposal Assistance Program
It’s cutting it close, but it’s still not too late to qualify for the Proposal Assistance Program for this year’s Conference. If you are planning on exhibiting this year, reserve your booths now and you can participate in this invaluable program before the proposal submission window closes on February 28th. Through this program, you’ll receive personal feedback on how to improve your speaking proposals for the Conference, giving you a clear edge over your competition.
-Rachel
Tags: Conference, NASPP, proposal, rfp