orthofix international stock purchase program hr international december 2015
TRANSCRIPT
Orthofix InternationalStock Purchase Program
HR InternationalDecember 2015
Orthofix Stock Purchase Plan
Rules Process Enrollment Documents Examples & Simulation
Stock Purchase Plan (SPP) – Rules
The current rules of the Orthofix International Stock Purchase Plan are: SPP is an annual stock purchase plan for Orthofix employees It runs from January to December In January you can elect which amount or percentage you would like to
contribute each month (from 1 to max. 25% of your salary or fixed amount) and you can’t change your contribution during the year
You can leave the plan at any time during the year, but entering is only possible in January
If you decide to leave the Plan, you can’t re-enter again in the same year At the end of the year you can elect if you would like to buy Orthofix
shares with your savings
Stock Purchase Plan (SPP) – Rules
If you decide not to buy shares, you get your money back (maybe with a little interest, but usually we put it in very safe accounts with no interest)
If you want to buy shares, you will get them at a discounted price – 85% of either the year starting or closing price (whichever is lower)
The amount of the discount is usually subject to income tax You will receive an online stock trading account with “E-Trade” and you
can sell the shares anytime you want
Stock Purchase Plan (SPP) – Process
1. HR sends a memo with the plan documents and the deadlines of the process to you in December
2. The enrollment will be done in the new HR system “Workday” between January 4th and January 15th.
3. Every month your elected amount/percentage will be deducted from your net pay
4. In December HR sends you a withdrawal form – if you do not withdraw, you have to buy the shares in January
5. In January HR sends you the “End of Plan Memo”, indicating the purchase prize, your total amount of shares and your taxable gain
6. HR informs payroll of the taxable gain to be included
Stock Purchase Plan (SPP) – Enrollment
Please see seperate, detailed instruction manual for the enrollment process in Workday
Stock Purchase Plan (SPP) – Withdraw Form
Stock Purchase Plan (SPP) – End of Plan Memo
Stock Purchase Plan (SPP) - Examples
For 2014 we could buy the shares at this rate:
Recently the stock price was over $40
This is more than double the value!
Recommendation:Use only money you have available after covering all of your expensesMake use of this company benefit. It is almost impossible to lose money due to the discount.
Stock Purchase Plan (SPP) - Simulation
Monthly Gross Salary 8.000,00 € Monthly Net Salary 4.000,00 € Monthly Net Deduction/SPP Contribution
800,00 € your choice, from 1% to max 15% of gross salary or fixed amount
Annual Contribution in € 9.600,00 € Annual Contribution in USD $ 11.520,00
Exchange Rate EUR-USD $ 1,20 example exchange rate Market Share Price January 1st $ 30,00
Market Share Price December 31st
$ 25,00
Employee Purchase Price $ 21,25 85% of which ever is lower (January or December) You can buy: 542,117647 number of shares = Contribtution $ / Purchase Price $rounded: 542 shares (The excess of the money is reimbursed to you)Value of Discount/Taxable Gain in USD
$ 2.710,00 Taxable Gain = Number of shares bought x amount of discount per share"Present" from the company = benefit
Value of Discount/Taxable Gain in €
2.258,33 €
Stock Purchase Plan (SPP) - Simulation
Income (Taxable Gain in EUR)
Example Tax Rate Tax Amount
Discount minus Tax
Income tax *2.258,33 € 30% 677,50 €
1.580,83 €
*in Italy the income taxable gain is calculated considering the average of shares price in the previous month of the shares
release
Thank you for your attention!For more details visit http://ir.orthofix.com/stockquote.cfm