May 15, 2012
In this Issue:
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SOS Xtranormal Participant 6039 Education Videos:
SOS Employment Opportunities
From the SOS Xtra Archive:
Oops! Accounting for ESPPs - Share True Ups?
A recorded demo of "Email Xpress", the SOS automated solution for emailing participant stock plan confirmations and statements, is now available:
From the SOS Webcast Archive -
Ideas or Questions:
Do you have ideas for our next newsletter or webcast? Topics you're dying to see addressed but haven't yet? Please send us an e-mail with your ideas to: firstname.lastname@example.org.
Spring has finally sprung in California. And with it we are to spring some news of our own about recent happenings at SOS, some exciting, some a little sad.
First on the docket is our move from San Jose to Campbell, CA. Just about 20 minutes farther North, and further into the heart of Silicon Valley. Our previous location in San Jose was beautiful and spacious, but too far South. Our new digs are much closer to many of our Silicon Valley clients and shorten the commute for most of our employees while putting us in walking distance of places we want to eat, drink and shop. Our new address is:
910 Campisi Way, Suite 2E
But don't worry, if you lose the information, our website is already updated and our industry partners (NASPP, GEO, CEPI, etc.) are in the process of updating their records as well.
A Sad Farewell
Long time SOSer Sean Lembree is no longer with the company. Sean recently moved his family from California to Texas and was working remotely for SOS. SOS and Sean recently decided to part ways mutually and amicably. I thank Sean for all his amazing contributions to SOS over the last 9 years. SOS would not be where it is today without all his incredibly hard work, brilliant ideas, and winning personality. While we are very sad to see Sean go, we are excited to work with him in the future, as we know our paths will cross in equity compensation again. It is a small industry! All our best wishes go with him!
Need an easy way to stay up-to-date on industry news? Follow us on Twitter or become a fan on Facebook.
SOS Out and About
Where we've been...
SOS is hiring, and in 2012, we have been able to bring a number of excellent consultants onboard. Here are the recent additions to the SOS Team:
SOS Webcast Recordings and Materials:
Mission: Implementation: A Stock Plan Professional's Guide to Implementing a Provider
Irrational International: Avoiding Common Errors in Non-US Equity Awards
Consenting Adults? Tackling the Challenges of Electronic Delivery of 3921/3922 (Part II)Editor's Note: This is a continuation of an article from the last issue of Xtra. For Part I, click here.
The electronic version of the Form must contain all required information and comply with applicable revenue procedures (publication 1179 for 3921/3922) relating to substitute statements. You can do a mail merge that complies with the requirements to send an email - but it will generally be one email per "transaction" (exercise or purchase). Emails containing "composite" forms (with multiple transactions per form) are a little trickier but can be accomplished with MS Access or some commercially available software (SOS 6039 Xpress is a great example of one).
There are also requirements around notifying participants of the availability of the electronic form, and what you need to put in the subject line, etc.
Website - Notification / Email Subject line
Forms must be available to the participant through October 15 of the year following the calendar year to which the Forms relate (or the first business day after October 15, if October 15 falls on a weekend or legal holiday).
Corrected Forms must be available for the same period or the date 90 days after the corrected forms are available, whichever is later.
Paper forms after withdrawal of consent
If a recipient withdraws consent to receive electronic forms and the withdrawal takes effect before the form is sent, a paper form must be provided. A paper form furnished after the form due date is timely if furnished within 30 days after the date the withdrawal of consent is received by the furnisher.
Overview of Process Start to finish:
So let's recap the process overall, is it really a lot of work? Or is it less work than you might think?
Questions or comments? Please email us at email@example.com
Fractional Shares on an ESPP - Pros & Cons - One Consultant's ThoughtsThe Client Question:
If the vendor can handle, are there any challenges with purchasing fractional shares with no carry-forward?
The Consultant's Answer:
I find allowing fractional shares on ESPP purchases to be uncommon in practice. Most plans I see limit to whole shares only. If you wanted to write that flexibility into a plan, I'd have more than a few administrative concerns.
Questions or comments? Please email us at firstname.lastname@example.org
Susan Garvin is a Senior Equity Compensation Consultant with Stock & Option Solutions (SOS). Susan is a frequent speaker on equity compensation related topics; including events sponsored by the NASPP, the Certified Equity Professional Institute, and the National Center for Employee Ownership. She also created/delivered the "Stock Admin 101" seminar while with Salomon Smith Barney. Susan has been in the equity compensation field since 1993, with a wide range of experience, from IPOs to Mergers and Acquisitions to daily stock administration and training of new administrators. She is currently a member of NASPP, GEO and NCEO, received her CEP designation in 1994 and volunteers with the CEPI in many capacities. Susan has a BA from San Jose State University.
Free SOS Educational Webcast
A Fresh Look: Employee Stock Purchase Plans
June 6th, 2012
Please join us for our next educational webcast on June 6th at 11am Pacific Time, 2pm Eastern Time.Description:
The humble ESPP doesn't always grab headlines or dazzle the crowds, but with the most recent installment to the GPS series from the Certified Equity Professional Institute (CEPI), these historically underappreciated and under-served equity plans are getting a new resource. Never excessive, always in the money, and scoring big points on expense efficiency, the ESPP is a winning formula. This panel will address ESPP issues, particularly those that can sneak up and cause trouble. With discussion including design concepts, accounting perspectives, legal and administrative considerations, and gotchas, attendees will leave this session with a new perspective on ESPP.
Speakers:CEPI website for more information on CEP continuing education requirements.)
ESPP Services and Solutions from SOS
Our line of ESPP solutions and services will simplify your life, save you time and reduce your company's risk by streamlining your processes, helping you stay in compliance with accounting standards and tax regulations, and facilitating effective participant communication and education.
This month's Product Spotlight will focus on the myriad ways we have assisted our clients who offer an Employee Stock Purchase Plan as part of their equity compensation program.
ESPP Plan Rollout
Is ESPP new to your company? Our consultants have developed project plans for implementing these plans end-to-end. We work with decision makers to develop timelines, communications, process documentation, tax compliance, custom reports, and interface files. We can also provide assistance with, or complete management of, the ongoing processing of purchases.
Outsource your ESPP management to SOS. SOS can provide a spectrum of services in this area that can be tailored to your company's unique plan. We can manage your Open Enrollment, process your purchase, coordinate with payroll, respond to employee inquires and provide financial reporting and reconciliation. You decide what level of expertise and involvement you want and let SOS take care of the rest. The SOS outsourcing solution is unique, let us show you how.
Customized to the features of your plan to help your staff understand ESPP basic and advanced topics. May also be combined with option, restricted stock/unit, or performance share trainings.
For some in-house software, a custom report can be installed, allowing you to print these forms just as easily as you print a Confirmation of Purchase.
Are you planning to change ESPP systems or providers? Struggling with complicated data formats and logistical hurdles during the conversion process? SOS can help! We've converted clients to and from many different systems and providers over the years and have faced the challenges you are encountering (or will encounter). Our ESPP conversion process leverages both subject matter expertise and technology tools to make the process consistent and repeatable and speed you on your way.
To learn more about the SOS suite of ESPP solutions, please contact us at (888) SOS-0199 or email us.
1To distribute forms only electronically, participant consent must be obtained.
SOS Xposé...tender tidbits about people and players in our industry...
GEO Board of Directors...SOS CEO Marianne Snook is running for the GEO Board of Directors. We may be a little biased, but we couldn't think of a better qualified person for the position, and are asking for your support. Voting opens on June 1st, and is open through June 15th. Only registered members of GEO are eligible to vote, and must be registered by May 31st in order to do so. SOS will be sending out more information soon. For more information on becoming a member of GEO, please click here.
Change of Scenery...Danyle Anderson is the new Executive Director at GEO...Mike Hom, known for a long time around SOS not only for the tremendous expertise he brought to our clients, but also for his unique perspective he offered on any subject to those within earshot, has joined the stock plan group at Gilead Sciences...Rose Hoffman has a new job with E*TRADE Corporate Services as a Client Manager. Congratulations, and good luck to everyone!
A Walk Down the Aisle...Michael Palermo and Melanie Parsons, both from E*TRADE Corporate Services, are getting married on September 22nd.
New Arrivals...SOS's own Shawna Casey delivered a healthy baby girl, Chloe, on March 19th, 2012. Congratulations to Shawna, her husband Brandon, and Chloe's big brother, Cole! (picture here)...My Equity Comp's Gary Hamilton and his wife Kathryn are very pleased to announce that they have just recently had a wonderful 4 year old boy placed with them through the Foster Adopt system. Even better, his adoption should be finalized in the next 6 months. Congratulations to you and your family, Gary!...Kate Forsyth of Deloitte Tax LLP had a baby girl, Amelia, on February 2nd. Amelia was 7 pounds, 5 ounces and 20.5 long, and, according to her mom, born with a decent set of lungs on her! Click here to see a picture. Congratulations Kate!
Baby Bumps...Both Justin Docter and his wife, Liz, as well as Mike McDonald, and his wife, Jennifer, of SOS are expecting babies in the Fall. Congrats from all of us here at SOS on your growing families!
Lots of good news from EASi to pass along. Robin Silke, John Neider and Rose Masiuk have joined EASi over the last 4 weeks. In addition to her new position there, Robin will also be heading up the new East Bay GEO chapter. They also had a new arrival of the baby variety, as Thierry Vo had a baby girl, Hannah, on February 28th.
Industry News...The NASPP and PricewaterhouseCoopers are pleased to announce that they have teamed up 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. The full survey results will only be available to those companies that complete the survey. The survey must be completed by May 25, 2012.
2012 iQuantic® Global Long-Term Incentive Practices Survey - Buck Consultants' iQuantic® Global Long-Term Incentive Practices Survey has been helping organizations evaluate their LTI programs for over a decade. Participation in the survey this year is complimentary for first-time participants. As a participant, you will have the ability to get one cut of Buck's exclusive and customizable LTI data, as well as receive a copy of the survey's Practices report in July.
Click to register to participate. Upon registration, you will receive a personalized link to the questionnaire and an Excel-based data assistant to help provide employee-level data to the database. Submissions are due by June 15. For more information, contact 1.800.887.0509 or email at email@example.com. Additional information can be found here.
|Information provided in this newsletter is designed for educational and entertainment purposes only and is not provided as professional service or advice. Moreover, this newsletter should not be relied on as legal, accounting, auditing, or tax advice. Anyone reading this newsletter should not act upon this information without seeking professional counsel and/or input from their advisors. The preceding information does not necessarily represent the official views of Stock & Option Solutions, Inc. with respect to any of the issues addressed.|
Stock & Option Solutions | (888)SOS-0199