Equity Expert: A Podcast from the NASPP

Complying with SAFE, Circular 35, and other complexities of offering equity awards in China.

Episode Notes:

• SAFE registration for options and awards (1:52)
• SAFE registration for ESPPs (5:10)
• Establishing a foreign exchange bank account (7:42)
• Taxation of equity awards in China (10:06)
• Possible elimination of preferential tax treatment (14:57)
• Where to hold shares for Chinese nationals (21:22)
• Mandatory cashless or same-day-sale programs (22:28)
• Current events (25:15)
• Best practices (27:31)

Resources Mentioned in This Episode:

• Equity Administration Survey
• Webinar: Best Practices in Stock Plan Administration
• Webinar: Global Stock Plan Administration Trends

Additional Podcasts in This Series:

• Trends in Mobility Compliance
• Tax Withholding Practices for Equity Awards

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Data on how companies manage on-time tax deposits, determine tax withholding rates, respond to employee requests for additional withholding on equity plan transactions and more.

Episode Notes:

• Complying with IRS deposit deadlines (1:36)
• Tips for depositing taxes on time (3:45)
• Pre-funding tax deposits (5:25)
• Defining FMV as the prior day’s closing price (6:59)
• Allowing employees to request additional withholding on equity plan transactions (8:35)
• Determining tax withholding rates for non-US employees (14:00)
• Frequency of reviews for global tax compliance (21:06)
• Methods of staying informed of global developments affecting equity plans (22:37)
• Working with local in-country personnel to stay informed (24:49)

Resources Mentioned in This Episode:

• Equity Administration Survey
• Webinar: Best Practices in Stock Plan Administration
• Webinar: Global Stock Plan Administration Trends
• Podcast: Trends in Mobility Compliance

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How companies track mobile employees and manage tax compliance for their equity awards.

Episode Notes:

• Global vs. Us domestic mobility (1:44)
• Business travelers (10:19)
• Remote workers (14:30)
• Getting budget for mobility compliance (21:06)
• Tracking employee locations (22:37)
• Use of third-party advisors to assist with tax calculations (26:51)
• How to approach mobility compliance (29:55)
• Tracking mobility employees is important even with no other compliance (36:44)

Resources Mentioned in This Episode:

• Equity Administration Survey
• Webinar: Best Practices in Stock Plan Administration
• Webinar: Global Stock Plan Administration Trends

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Why stock price volatility is a problem when it comes to sizing grants and how using a multiday average and other approaches can help you manage your burn rate.

Episode Notes:

• How companies typically determine grant sizes (0:58)
• The effect of declining stock prices on grant sizes (2:15)
• Pay equity considerations (4:19)
• Using a multiday average to denominate grants (7:14)
• What averaging period to use (10:09)
• Disadvantages of a multiday average approach (14:15)
• Other approaches to manage share usage (15:47)
• Restricting award eligibility to control burn rates (18:38)

Resources Mentioned in This Episode:

• Sizing Grants During Periods of Market Volatility
• 2 Reasons Multiday Averages Make Sense for Grant Sizing

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Galahad Dong on how his experience in the military helps him lead HRIS and Total Rewards (and equity compensation) at Simpson Strong-Tie.

Episode Notes:

• Galahad’s origin story (0:36)
• His current role as director of HRIS and Total Rewards (2:06)
• How military experience helps in managing stock plans (3:49)
• Background on Simpson Strong-Tie (4:53)
• How Simpson-Strong-Tie uses equity (6:21)
• DEI programs at Simpson Strong-Tie (8:52)
• Diversity at the NASPP and Galahad’s role on the DEI Task Force (11:53)
• Advice on growing your career in compensation (13:35)

Resources Mentioned in This Episode:

• The NASPP’s DEI Initiative

Additional Podcasts in This Series:

• Conversation with Christine Zwerling
• Conversation with Paz Dizon
• Conversation with Dana Hall

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Episode Notes:

• A note on this episode (1:34)
• Section 423 qualified vs. nonqualified plans (2:13)
• Fractional vs. whole share purchases (9:21)
• Cashless funding vs. limiting funding to payroll contributions (17:14)
• Lookback pricing vs. purchase date only pricing (28:04)

Resources Mentioned in This Episode:

• Four Ideas to Make Your ESPP More Equitable
• Could Fractional Shares Benefit Your Stock Plan Participants?
• Overlooked and Underrated: Why Fractional Shares Matter
• Should You Consider a Cashless ESPP?
• 2020 NASPP Deloitte Domestic Stock Plan Administration Survey

Additional Podcasts in This Series:

• Half Empty, Half Full: A Closer Look at TSR Awards
• Half Empty, Half Full: Thoughts on the SEC's Rule 10b5-1 Proposal
• Half Empty, Half Full: Our Thoughts on Four Stock Plan Topics

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Episode Notes:

• What are cashless ESPPs and how do they work? (3:50)
• Outset Medical’s path to a cashless ESPP (9:08)
• Features of Outset Medical’s new cashless ESPP (11:44)
• Employee reaction to Outset Medical’s new ESPP (13:31)
• Common concerns about cashless ESPPs (15:01)
• Current interest in cashless ESPPs (17:56)

Resources Mentioned in this Episode

• The Problem with ESPPs
• Should You Consider a Cashless ESPP?
• Four Ideas to Make Your ESPP More Equitable
• Are You Overvaluing Your ESPP?

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Episode Notes: 

• What is spring-loading? (00:40)
• Reminiscing about the option backdating scandal (4:58)
• Summary of the SEC’s guidance (8:49)
• Impact of SAB 120 on grant valuation (10:31)
• Practical implications of SAB 120 (14:27)
• Disclosures required for spring-loaded grants (19:06)
• Tips to avoid inadvertently spring-loading equity awards (23:30)

Other Resources on This Topic:

• Examining the SEC’s New Guidance on Spring-Loaded Grants
• SEC Targets Spring-Loaded Equity Awards
• Staff Accounting Bulletin No. 120
• Why I Did Not Go To Jail 

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Christine Zwerling of Twilio describes her career path in equity compensation, offers tips to be more productive, and discusses her experience and interest in DEI and her interest in the NASPP's DEI Task Force. 

Episode Notes:

• Christine’s origin story (1:06)
• Career challenges (8:39)
• Getting the advice you need (14:01)
• Productivity hacks (15:51)
• Superpowers (20:27)
• Diversity at the NASPP and Christine’s work on the NASPP’s DEI task force (21:57)

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Hear how Paz Dizon, the current Head of Stock Plan Services at Jazz Pharmaceuticals, has crafted her career in equity compensation, including finding her superpower and leveraging relationships to drive learning and success. 

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