participant education, an sps/gz consulting service - stock plan
TRANSCRIPT
Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
ParticipantEducation
An SPS/GZ consulting service
Rick Zatz, CEP, Principal
Mary Pat Wood, CPA, CEP, Principal
Page 2 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Agenda
Introductions
SPS/GZ: Who we are
Overview of SPS/GZ services
SPS/GZ’s education philosophy
Benefits of robust education program
SPS/GZ’s solution for participant education
Overview of SPS/GZ’s education presentations
Questions and contact information
Page 3 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Introductions
Rick Zatz (Co-Founder)Rick is a Certified Equity Professional (CEP) with 15 years of experience instock plan administration. He managed the stock plan administrationdepartment of a global technology company before founding SPS/GZ. Rick isrecognized as a leader in the industry and has served on many panels related tobest practices in stock plan administration and curriculum for the CEP program.He holds a B.A. in journalism from Indiana University.
Mary Pat Wood (Co-Founder)Mary Pat is a Certified Public Accountant (CPA) and a Certified EquityProfessional (CEP) with 18 years of experience in stock plan administration,accounting and financial reporting, SEC compliance, financial forecasting andinvestor relations. She was formerly an auditor for a “Big Four” accounting firmand served as External Reporting Manager at a global software company and ata national mortgage company, where she managed the Initial Public Offering.Mary Pat is a recognized expert in the accounting, reporting and tax aspects ofequity compensation administration. She holds a B.S. in Accountancy fromDePaul University.
Page 4 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Who we are
A full-service administration outsourcing and consulting firm
Staffed by seasoned certified professionals (CEPs and CPAs)
Privately held company
Located in Chicago
Founded in 2001
Mission: To provide our clients with expertise and guidance from equitycompensation professionals with “real-world experience” who can address thechanging landscape of administration, best practices, accounting regulations anda multitude of complex issues born out of IPOs, mergers and the evolvingSarbanes-Oxley environment.
Page 5 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Our services
Outsourcing
Complete, reliable outsourcingservices for equity compensationprograms (Stock Options, RestrictedStock Awards/Units, StockAppreciation Rights and EmployeeStock Purchase Plans)
Plan implementation and dailyadministration
ASC Topic 718/FAS 123(R)valuations and financial reporting
SEC, IRS and FASB compliance
Consulting
IRC 6039 mailings and filings
Database implementations and thirdparty database audits
ASC Topic 718/FAS 123(R)/StockPlan accounting consulting
Customized education presentationsto plan participants
Customized training
Best practices consultation
Remote, temporary fill-inadministration
Page 6 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Education philosophy
Nearly all companies have mandatory employee benefit orientation meetings fornew employees. Typically, these meetings cover health insurance, 401(k) andother programs available to employees.
Rarely, it seems, are equity compensation programs part of these orientationmeetings. This means a significant part of employees’ compensation package isnot explained in a comprehensive way so that both equity plan savvy anduninitiated employees can understand and value their stock plans and makeinformed decisions about their participation.
SPS/GZ believes that well-designed equity compensation plans that also arewell communicated on a regular basis to employees can bring great benefit toboth the company and the employees.
This is why SPS/GZ offers a variety of customized education choices that canstand alone or be combined to provide a robust education program. Thesesolutions are developed by seasoned and certified stock plan andcommunication professionals.
Page 7 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Education benefits
Here are some benefits to a robust education program:
Retain top-notch employees: Equity compensation programs are a tool that companiesuse to attract and retain high-caliber employees. Employees who understand theseprograms will more likely be the ones who ask: What am I leaving on the table if I leave?
Improved morale: Educated employees will place a higher value on their equity benefitsand appreciate how it impacts their total compensation package.
Employees as owners: Educated employees will make smarter decisions about theirparticipation in company stock plans, which helps align the goals of the company with theiremployee shareholders.
Return on expense and cash flow: Under ASC Topic 718 (formerly FAS123(R)), stockplans must be taken as an expense. Given that these plans are no longer “free” tocompanies, and factoring in the cost to administer them, it makes sense to haveemployees understand and value the programs that are now even more costly to theiremployer. Additionally, employers receive greater cash flow from increased participation.
Page 8 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Education solutions
Clients may select any or all of the education solutions offered by SPS/GZ:
Orientation presentations: SPS/GZ will create a 30-minute slide show withaudio that can be shown during orientation meetings. The slides and audio arecustomized. This is a summary overview and does not cover as many details asthe on-site or webcast presentations. These can be updated as requested.
On-site presentations: SPS/GZ will develop and deliver on-site presentations.The presentations are customized and are delivered so that knowledgeableemployees are not bored and the inexperienced employees can understandhow their stock plans work in general and in detail. These presentations can bedelivered by SPS/GZ once, on a regular basis, or at strategic times.
Live webcast presentations: Similar to on-site presentations, though not aseffective. The webcasts can replace the live presentations or be combined withthe live presentations to reach employees in more remote locations.
Documentation: SPS/GZ can develop customized documents(FAQs, forms, etc.) that clients can post online or distribute.
Page 9 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Education overview
SPS/GZ develops customized presentations and documents for:
Stock Options (both Incentive and Non-Qualified) Restricted Stock Awards (RSAs) Restricted Stock Units (RSUs) Employee Stock Purchase Plans (ESPPs) qualified under IRC 423
Presentations cover:
Overview of stock plans and why company includes them as part of thecompensation package. How stock plans work in general (grants, vesting, exercises, dispositions,cancellations, etc.). The details of how stock plans work specifically at the client company (taxpayments, brokerage, terminations, etc.).
Page 10 Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Education overview
For on-site or live webcast presentations, SPS/GZ:
Does up to three single-topic presentations per day.
Does up to two double-topic presentations per day.
Includes brokerage overview if information is provided by client.
Includes list of important contacts, dates and deadlines for employees.
Includes time for Q&A session after each presentation.
Includes time for employees to speak individually with SPS/GZ professionals.
Does NOT include investment, tax or accounting advice to employees.
Copyright © 2011 Stock Plan Solutions/Green Zapato LLC
Call us at (312) 836-9931or visit our website at
www.spsgz.com
Rick Zatz, CEP, Principal
Mary Pat Wood, CPA, CEP, Principal
Thank you!