Equity Expert: A Podcast from the NASPP

In this replay of one of our classic episodes, Sandra Sussman of SAP describes how they are able to offer an ESPP with a 40% match, offer financial assistance to help nonexecutives participate, and solve the challenge of tax withholding at the same time.

Episode Notes:

• SAP's path to the Own SAP plan (1:55)
• How Own SAP works (3:30)
• The 40% Match and 20 Euro subsidy (4:45)
• How SAP manages tax withholding on the plan (5:57)
• Administering the plan (7:08)
• Participation in the plan (8:26)

Other Resources on This Topic:

• Blog: Solving the Challenges of a Global ESPP
• Blog: Four Ideas to Make Your ESPP More Equitable
• Blog: Could Fractional Shares Benefit Your ESPP Participants
• Video: ESPP Design: Match vs. Discount
• Video: Let's Talk About Equity Rights, Equality, and ESPPs

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The latest data on how companies pay out equity awards to retirees and how retirement eligibility is determined. Plus, a discussion of the treatment of equity awards in the event of death and disability.

Episode Notes:

• Criteria for determining retirement eligibility (1:06)
• Minimum age requirements (4:31)
• Minimum service requirements (6:43)
• Treatment of equity awards upon achieving retirement eligibility (7:45)
• Prevalence of equity award payouts to retirees (9:32)
• Accelerating vs. continuing vesting upon retirement (11:43)
• Full vs. pro rata payouts to retirees (15:31)
• Treatment of equity awards in the event of death or termination due to disability (17:04)

Resources Mentioned in this Episode:

• NASPP Webinar:   Top Trends from the 2021 Equity Incentives Design Survey
• NASPP Webinar: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Equity Award Usage and Eligibility
• Equity Expert Podcast: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Performance Awards
• 2021 Equity Incentives Design Survey, cosponsored by the NASPP and Deloitte Consulting
• Blog: Pros and Cons of Accelerating vs. Continuing Vesting Upon Retirement

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Episode Notes:

• Prevalence of performance awards at tech companies vs. other industries (2:36)
• The growth of TSR Awards (4:52)
• Types of operational metrics that companies commonly tie vesting to (8:29)
• Use of ESG metrics in long-term incentives (9:46)
• Use of multiple performance metrics (11:43)
• Treatment of performance awards in changes in control (15:38)

Resources Mentioned in this Episode:

• NASPP Webinar:   Top Trends from the 2021 Equity Incentives Design Survey
• NASPP Webinar: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Equity Award Usage and Eligibility
• Equity Expert Podcast: Trends in Global Equity Incentives
• 2021 Equity Incentives Design Survey, cosponsored by the NASPP and Deloitte Consulting

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We ask Terry Adamson of Infinite Equity what he thinks about paying out TSR awards when performance is negative, using TSR as a modifier, custom peer groups and more.

Episode Notes:

• How much more usage of TSR awards can we expect (1:50)
• Custom peer groups (4:06)
• Paying out awards for negative TSR performance (8:44)
• Using TSR as a payout modifier for other metrics (11:35)
• The benefits our measuring outperformance (13:38)
• Barbara uses a football metaphor (19:37)
• Other market-based alternatives to TSR awards (20:34)
• Barbara and Terry plan a follow-up podcast on relative Sharpe-Ratio awards (24:20)

Resources Mentioned in this Episode

• A Better Way to Calculate Volatility
• Constructing the Pentagon of Incentives
• How to Size Relative TSR Grants with a Stub Period

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Episode Notes:

• Mark's background (1:33)
• Types of equity vehicles offered globally (2:07)
• Practices on adjusting awards by location (4:05)
• Prevalence of tax-qualified plans (8:09)
• Update on the UK (13:09)
• Update on Canada (16:35)

Resources Mentioned in this Episode:

• NASPP Webinar:   Top Trends from the 2021 Equity Incentives Design Survey
• NASPP Webinar: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Equity Award Usage and Eligibility
• 2021 Equity Incentives Design Survey, cosponsored by the NASPP and Deloitte Consulting

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Host: Barbara Baksa, Executive Director, NASPP

Guest: Dana Hall, Designer Brands

Episode Notes:

• About the NASPP’s DEI Initiative
• Dana’s career path (2:12)
• Majoring in human resources (3:14)
• Dana’s role at Designer Brands (7:35)
• What Dana likes about working in compensation (9:06)
• Dana’s role on the NASPP’s DEI Task Force (11:49)
• Dana’s leadership role in Designer Brands’ African American BRG (13:55)
• Internships at Designer Brands (15:35)
• Shoe-related puns (16:47)
• Dana’s advice for growing your career in compensation (17:27)

Resources Mentioned in this Episode:

• NASPP DEI Initiative

Thank you to Bank of America for sponsoring the NASPP's DEI Initiative.

About Our Guest

Dana is a native of Columbus, Ohio and currently works as the Senior Manager of Compensation for the Corporate Offices of Designer Brands Inc. Her team manages the compensation programs for their business segments in the United States. This includes base compensation, short-term and long-term incentive plans. Dana has worked in the field of compensation for over 22 years, primarily in the retail industry.

Dana majored in human resources and graduated with a bachelor’s degree from The Ohio State University. She is a Certified Compensation Professional (CCP) and has also earned her Equity Compensation Associate (ECA) designation.

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Host: Barbara Baksa, Executive Director, NASPP

Guest: Ian Dawson, Deloitte Consulting

Episode Notes:

• Ian's Background (1:39)
• Overall trends in the types of equity vehicles public companies grant (2:34)
• Options vs. full value awards (5:18)
• Levels of employees eligible to receive equity awards (7:15)
• Grants to lower ranking employees (8:52)
• Comparison of practices at technology vs. nontechnogy companies (12:47)
• Prevalence of ESPPs (14:34)

Resources Mentioned in this Episode:

• NASPP Webcast:  Top Trends from the 2021 Equity Incentives Design Survey
• 2021 Equity Incentives Design Survey, cosponsored by the NASPP and Deloitte Consulting

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Barbara discusses the SEC's new Rule 10b5-1 proposal with John Jenkins of CCRcorp.

Host: Barbara Baksa, Executive Director, NASPP

Guest: John Jenkins, Senior Editor, CCRcorp

Episode Notes:

• Background on the Rule 10b5-1 proposal (0:25)
• Required cooling-off period (2:28)
• Prohibition on overlapping plans (4:26)
• Limitation on single-trade plans (5:34)
• Good faith requirement (6:52)
• Certification requirement (8:13)
• Quarterly disclosure of adoption and termination of 10b5-1 plans by officers and directors (9:25)
• Form 10b5-1 checkbox on Forms 4 and 5 (9:34)
• Reporting gifts on Form 4 (9:51)
• Disclosure of insider trading policies (10:07)
• Disclosure of options granted to named executive officers or directors within 14 days of company filings and repurchases (10:17)
• John's additional thoughts on the proposed rules (10:47)
• Happenings at CCRcorp that NASPP members might be interested in (12:11)
• Additional resources (12:52)

Resources Mentioned in this Episode:

• NASPP blogs on Rule 10b5-1
• SEC Proposes Amendments to Rule 10b5-1
• Rule 10b5-1 & Buybacks: Practical Impacts of SEC's Proposals (TheCorporateCounsel.net webcast)
• The Latest: Your Upcoming Proxy Disclosures (CompensationStandards.com webcast)
• PracticalESG.com
  
  

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Barb and Jenn discuss whether they feel empty or full on four trending stock plan topics: the SEC's proposed changes to both Edgar and Rule 10b5-1, plus ESG and participant communications.

Host: Jennifer Namazi, Content Director, NASPP

Guest: Barbara Baksa, Executive Director, NASPP

Episode Notes:

• Barb describes the half empty, half full format (1:15)
• Are we half full or half empty on the SEC's proposed changes to Edgar? (3:12)
• Why Jenn is half empty on communication with stock plan participants (13:56)
• Where does ESG fall on the empty/full spectrum? (20:40)
• Our opinions on the SEC's proposed changes to Rule 10b5-1 (26:35)

Resources Mentioned in this Episode:

• Podcast: T-Mobile's Communications are Engaging Stock Plan Participants 
• Equity Compensation Outlook Pulse Surveys

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Host: Jennifer Namazi, Content Director, NASPP

Guest: Aftab Ibrahim, CEP, CECP, Sr. Director, Stock Compensation & Exec Programs at 
T-Mobile

Episode Notes:

• T-Mobile's stock plan participant demographics (1:47)
• What communication formats work best to engage employees (3:05)
• Learnings about email and how that changed the communications approach (5:14)
• Was there a particular communication that had a big impact? (6:57)
• What happens when a communication doesn't resonate as expected? (10:57)
• Aftab's recommended tools/resources (14:34)
• How to move beyond email (16:05)

Resources Mentioned in this Episode:

• T-Mobile's Benefits Hub (access their stock plan communications here)

About Our Guest:

Aftab has over 15 years of experience with the administration of equity compensation, and is currently Sr. Director, Stock Compensation & Exec Programs at T-Mobile based in the Seattle area. He directs the plan design, implementation, and day-to-day operations of the equity programs with over 75,000 participants. T-Mobile currently offers broad based restricted stock units, performance restricted stock units, and an ESPP open to all employees.

He began his career in equity compensation on the Stock Team at Starbucks. Later, Aftab worked on the Stock Plan Services team at Microsoft before joining T-Mobile in 2010.  

Aftab earned bachelor’s degrees in Business Administration and Economics from the University of Washington.  He is a Certified Equity Professional (CEP) having earned the designation in 2007, as well as a Certified Executive Compensation (CECP) achieved in 2014.  Since 2006, he has served as an Officer for the National Association of Stock Plan Professionals (NASPP) and is currently the President of the Seattle Chapter.

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