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Granting Equity beyond the C-Suite May 25, 2017 8:30 – 9:30 a.m.
Amanda Flint, Principal, MercerCameron Hall, EVP, Canadian Client Services and Head of Global Marketing, Solium
Tim Shanahan, Sr. Stock Administrator, GoogleMarie Williams, Director, Total Rewards, Barrick Gold
CPE Credits
Continuing Professional Education (CPE) • Credits are available!• You will receive one (1) CPE credit after attending this session.• You must attend the entire session to be eligible.• In order to earn the available credit(s) for this session, you must see the room
monitor before and after the session to get checked-in and out of the session.• Electronic certificates will be emailed to you a few weeks after the conference
with the cumulative number of credits earned
Solium is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Web site: www.nasba.org
Panel
Marie WilliamsSenior Director, Total Rewards
Manages global total rewards program
Tim ShanahanSr. Stock Administrator
Manages global equity plan
Amanda FlintPartner, Global rewards practice
International Consultant
Cameron HallEVP Solium Canada
Manages Canada and Global Marketing
A Brand New Idea?
A few questions for you
H E A L T H W E A L T H C A R E E R
March 2017
Amanda Flint
London
Designing an international stock plan
© MERCER 2017 7
I N T R O D U C T I O N
In order to do so there are a whole host of considerations and planning to do – and plenty of support to help you along the journey. But let’s look at how it all starts……….
Global Team
Large sophisticated companies that operate internationally want their employees to feel part of a team – and that team
extends around the world.
Shared Purpose
In different cultures, in different countries
companies want their staff to feel part of the global organisation and often
have a range of initiatives aimed at achieving the
feeling of being part of the same organisation with an
overriding ‘larger purpose’.
In This Together
There is also the idea of joint purpose – “We are all in it together “ - and this can be combined with the
sentiment – we are all owners of this business
and a natural next step is to implement a new share incentive arrangements.
In order to do so there are a whole host of considerations and planning to do – and plenty of support to help you along the journey. But let’s look at how it all starts……….
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O N E D A Y , I N A M A N A G E M E N T C O M M I T T E E M E E T I N G . . .
So now let’s look at the why…
Listen up! I’ve had this great idea! We are going to launch a stock plan for our employees all over the world! It will be great!
Our employees just won’t understand it! (Wonder if I will still get my Hawaii trip in July?)
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Good grief, how much is that going to cost?
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Hold up, mister! What will our shareholders think?
“”
Nope. Not enough time, not enough admin resources! I have it here in black and white!
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There is such a thing as the law around the world – regulation -currency – I could go on! Maybe I should organise golf with the CEO and just explain why we should stick to cash…
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W H Y D O C O M P A N I E S W A N T T O I M P L E M E N T G L O B A L S T O C K P L A N S ?
Getting a stake in a global business for employees is empowering and inspiring for employees.
1) Examples:• Highly engaged employees are 87 percent less likely to leave their jobs than their disengaged counterparts (the Conference Board)• Companies with high levels of engagement saw an overall 3.74 percent increase in operating margin; and a two percent increase in net profits (ISR)• High levels of employee engagement corresponded to increases in customer engagement levels (Oakley)• Engaged employees are far more likely to suggest or develop creative ways to solve customer problems and to improve management or business processes (Gallup)
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W H A T Q U E S T I O N S S H O U L D T H E C O M P A N Y C O N S I D E R ?
Strategic Issues • How would a share plan support the organisation’s wider vision/business
objectives?
• How do share plans fit into the employee value proposition and how does it fit into employee total reward?
Global Consistency • Should the plan be used tactically in selected key markets only?
• Should the plan be rolled out in “waves”, or all at once?
• Should any new plan be contributory/not/or a combination? (e.g. free shares or purchase shares with a match or discount)?
Panel Discussion:Strategic Intent
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H O W C A N T H E P L A N R O L L O U T ?
Structure• Should any new plan be contributory/not/or a combination? (e.g. free shares or
purchased shares with a match or discount)?
• Should the plan be a one-off/ongoing/combination? Does the company want to commit at this stage as it is a big commit?
Communication • How do we ensure that the corporate messaging about the company’s brand is understood by participants?
• How would you create a high profile communication campaign, or a more local approach, such as targeted workshops by country?
• How would you measure the success of such a plan?
Panel Discussion:Global Compliance and Tax
© MERCER 2017 14
I S S U E S F O R E M P L O Y E E S
How do I get my stock? Where is it? How do I
access it?
Parent company shares are in $ -how much is it to
convert it?
I’m not sure that I understand stock – why
should I want it?
What happens if I leave?
Will I have to pay tax? Or file a tax return?What is the risk to me?
How much will it cost me?
Who do I ask if I have questions?
Can I vote my stock? Will I get distributions?
It sounds too good to be true, what’s the catch?
Panel Discussion:Employee Experience and Engagement
Closing Thoughts
Questions?
Contact Us
Amanda [email protected]
Cameron HallEVP, Canadian Client Services and Head of Global [email protected]
Tim ShanahanSr. Stock AdministratorGoogle, [email protected]
Marie WilliamsDirector, Total RewardsBarrick Gold [email protected]
