Phoenix-Sacramento Chapter
Webcast
Top Mid-Year Administrative Items
to Consider
JULY 2015
For NASPP Members (& Non-Members)
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NASPP 23rd Annual Conference
• October 27th – 30th in San Diego, CA
• Register now, before August 7 to save money
before the price increases.
Phoenix NASPP Chapter
• Announcements
– Board of Director (BOD) Nominations are coming up in
August
• Nominees must be:
– Members of NASPP
– Local to the chapter (live in Phoenix metro area)
– BOD elections will take place during the September
17, 2015 meeting
Please note these changes from prior years and be
on the look out for upcoming emails.
Mid-Year Review
Agenda
– Plan Documents
– Participants, specifically officers
– Educational Resources/Participant
Communication/Other Communication
– Procedural Review
– Changes/Other: Tax, Accounting, Payroll
Mid-year Review
Plan Documents:
•
Are you familiar with
plan provisions in the
event of:
–
–
Death
Divorce
Mid-year Review
Plan Documents:
•
•
Are beneficiaries permitted?
Are share transfers allowed?
Mid-year Review
Plan Documents:
•
What are specified share reserves?
–
–
•
Review share pools
Evergreen provisions
Other:
–
Review/rewrite grant agreements
» Paper maintenance or move to online
Mid-year Review
Plan Documents:
•
Changes:
–
–
Will there be a new equity type?
» Do you need a new plan?
Do you want to make policy changes?
» Review plan to see what’s allowed
Mid-year Review
Participants:
•
Status and Contact Information
–
–
–
Terminations/ Retirees
Upcoming Changes
» Terminations/retirees
» New hires
Identify Expatriates
Consider how these participants are coded in your
administration system and could there be a better
way?
Mid-year Review
Participants:
• Disqualifying Dispositions
– Are you familiar with all IRS requirements?
– Know when you/your service provider sends surveys
– Who receives surveys and tracks dispositions?
Helpful summary of IRS Filing and Reporting
Requirements listed under NASPP Year-End
Procedures.
Mid-year Review
From Fenwick & West:
Mid-year Review
Participants:
•
Tax Rates
–
–
International Participants
Reach out to foreign
payroll
Based on Morgan
Stanley/NASPP’s recent 2014
survey on Mobility,
outsourcing the mobile
population is a popular
choice. Do your tax
consultants have what they
need?
Mid-year Review
Participants Con’t.:
•
SEC Filing
Codes/Keys
–
–
–
–
Insiders
10b5-1 plans
Legal Review
Any changes sent
to applicable
service providers
10b5-! Checklist from:
http://www.naspp.com/members/dlib/files/n671.htm
Mid-year Review
Educational Resources/Participant Communication:
•
Review prior communication and response rate
–
–
–
FAQs
» Taxes
Training Manuals
Calendar of Events
» Trading windows
» Enrollment dates
Mid-year Review
Participant Communication – Sample Trading
Window Notice:
Mid-year Review
Educational Resources/Participant Communication:
•
Upcoming Events
–
–
–
–
•
•
Large Lapses/Vesting
Expiring Options
Purchase
Year-End
Participant Communication
Internal Communication
Mid-year Review
Internal Planning – Sample Calendar (from
http://www.naspp.com/ChapterEventFiles/e3228_Delves_Presentation.pdf ):
Mid-year Review
Educational Resources- RSU Vesting Sample FAQs:
Mid-year Review
Other Communication:
•
Vendors
–
–
–
–
Are new services required?
Do contact lists need to be updated?
Is there a need for custom reports?
Will there be any upcoming changes to your plan or grants that
your current service provider needs to be aware of?
See NASPP’s “Vendor Management Portal” for materials
on the vendor search process and vendor analysis.
Mid-year Review
Procedural Review:
•
SOX
–
–
–
–
–
New Grant Process
10b5-1 processes
Transaction processes
Month-end close process
Are there any errors that need to be corrected?
Mid-Year Review
Sample Stock Plan Process – New Grant (from
http://www.naspp.com/members/dlib/files/n612.htm):
Mid-year Review
Procedural Review:
If haven’t already identified
areas internal controls are
risk areas, see:
http://www.naspp.com/mem
bers/Portal/InternalControls.
htm
Mid-year Review
Mid-year Review
Other:
•
Contact Lists
–
•
1099
–
•
Distribution lists
audit
Payroll (Taxes)
–
–
W2 audit
Last payroll run of calendar year
» Deadline for deliverables
Mid-year Review
Other:
•
Payroll (Taxes)
–
–
–
–
•
Tax rate/tax limits
Tax Withholding changes
Mobility
Documentation
HR
–
Year end communications
Mid-year Review
Other:
•
Deliverables
–
–
–
–
Deadlines
Reports
New Reporting Requirements
All procedures documented?
Mid-year Review
Other:
•
Accounting
–
–
–
FR change or methodology change
» Forfeiture rate review
» Are you using a Static or Dynamic approach?
Assumption changes
Cost center or group changes
Mid-Year Review
TSRPU0010
4
PWC – Stock
Compensation
2014
Assumption
and Disclosure
Study
Mid-year Review
Questions ?
Mid-year Review
Thank You for participating!
Please visit our respective chapter sites for the
presentation webcast.