Financial reporting requirements arising from employee equity compensation can be both demanding and time-consuming for companies, particularly for large concerns operating in multiple jurisdictions and likely facing different rules, regulations, and filing deadlines.

Sharing her experience and that of her company in staying on top of reporting as a large international business, Lily Anne Nueva Espana, Director of Global Accounting with Coupang, a South Korea-based e-commerce company with an international presence, joins hosts and J.P. Morgan Workplace Solutions’ own Chris Dohrmann, Executive Director of Strategic Partnerships, and Lauren Jenkins, VP, Head of Executive Participant Servicing, for a wide-ranging conversation, focusing on several related issues, including:

· Adhering to dual accounting standards

· How reporting obligations change as a company goes from private to public

· Disclosures related to roll forward of shares

· Tracking garden leave, leave of absence and their impact on vesting awards

· Her three essentials for adding relevant data to the online system

· The importance of effective communication with stakeholders

What is financial wellness and how does it relate to equity compensation?

A common challenge facing companies launching an equity compensation plan is employees lacking sufficient financial knowledge to fully understand what is being proposed. So, when an organization such as Stanford sets up a program to offer Financial Education to students, it should be recognized.

In the latest episode of Own Up Chris Dohrmann and John Bagdonas are joined by special guest, Manager of the Mind Over Money Financial Wellness Program at Stanford University, Danial Khan, to tackle one of the most important financial skills you need to learn; how to ensure your own financial wellness.

Are you focused on how to get the best out of your employees and achieve your business objectives? If so, now may be the time for you to explore the possibilities around equity compensation in your workplace.

In the latest episode of Own Up, Chris Dohrmann is joined by guests Erin Fraser, VP of Business Development, Global Shares a J.P. Morgan company and Joanna Phillips, VP, ESOP Builders to take you through all you need to know about how employee ownership can help your company succeed and grow.

Are you considering granting equity awards to PEO employees?

Don’t miss the latest episode of Own Up with Christopher J. Dohrmann and guests Marlene Zobayan Partner Rutlen Associates LLC and Jon F. Doyle Managing Shareholder International Law Solutions as they discuss the pros and cons of granting equity awards to PEO employees.

Find out if engaging with a PEO could be the right move for your business, and, if so, how you can get started.

Extending an equity compensation package to executives in any company does not end with simply signing over shares. There are considerations such as insider trading liabilities, the handling of material non-public information and protecting against negative reputational damage that need to be taken into account. With strict regulation to be followed, for HR departments and Rewards & Benefits teams it is a complex situation, one that needs to be managed correctly.

Taking a look at the rules surrounding these topics and giving an introduction into the world of Executive Services, Ryan Shreero, Executive Director of Executive Services at JP Morgan, joins regular hosts and Global Shares colleagues Chris Dohrmann, SVP of Strategic Partnerships and John Bagdonas SVP of Business Development to discuss the biggest challenges faced by executives today, 10b5-1 plans and more.

The New Year is always a good time to take stock.

With some many interesting developments having happened across the equity compensation industry in recent years, including Pay versus Performance, and pay transparency, we thought it was the perfect time to get some of our most experienced Own Up commentators together to discuss their predictions for 2024, in terms of emerging trends and incoming regulatory changes to watch closely, including:

• Mergers and Acquisitions in 2024
• The end of the ‘Great Resignation’
• How AI could impact HR and total compensation
• Further calls for pay transparency in compensation
• Whether markets will continue to see volatility

Erin Fraser, VP Business Development for Global Shares, a J.P. Morgan company, leads a conversation with Global Shares colleagues Chris Dohrmann, SVP of Strategic Partnerships and John Bagdonas Senior Vice President of Business Development, to talk about the ever evolving space of equity compensation and their predictions for the 2024 market.

Do you have an SAYE scheme?

If so, you may have heard about the recent updates introduced by the HMRC that impact Capital Gains Tax (CGT) and Bonus Tax Rates – as well as the announcement of more changes coming in 2024.

What does this mean for you and your participants?

Some participants may receive CGT tax bills for the first time, while others may receive higher bills than before. Meanwhile, the change in Bonus Tax Rates may yield higher returns for some.

In this episode, Darren Smith, Head of Business Development UK & Ireland for Global Shares, a J.P. Morgan company will be joined by Zoe Denny-Thomas, Senior Consultant & Equity Communications Practice Leader EMEA, for AON to talk through the specifics of the updates, their likely effects, and the importance of an effective communication plan to give your participants the information they may need.

The topics discussed include:

• Specifics on the reduced CGT exemption limit and implications for share plan participants
• The possibilities around using ISAs to help shelter individuals from potentially higher CGT bills
• The return of the bonus rate for SAYE plan participants
• What the changes mean to Sharesave plans and SIPs
• How companies can look to inform participants on these changes
• What effects, if any, the updates are likely to have on employee enthusiasm for share plan participation

SEC’s pay vs performance rule was first proposed back in 2015 – and after struggling for a number of years to make any progress, it was finally reopened in January 2022 and officially adopted in August 2022 in a 3-2 vote.

In broad terms, the ruling requires companies to disclose executive compensation payments and actual company financial performance.

However, it’s a lot more complex than it sounds and it’s expected that many issuers will have to spend a significant amount of time on their filings.

In our latest episode, we aim to dig deep into Pay versus Performance so our listeners can have a clear understanding of what is expected of them when they are preparing their proxy statements.

What we cover

• 03:30 – Profitability and implementation timelines
• 05:31 – The new Pay vs Performance table
• 07:28 – Compensation actually paid vs summary compensation numbers
• 12:09 – Fair value vs. Intrinsic value.
• 15:46 – What’s next for the new reporting rules?
• 18:02 – A better understanding of the time frame.
• 20:01 – How the new pay vs performance rules impact executive pay

About our guest

Terry Adamson is a Partner with Infinite Equity and a Fellow of Global Equity (FGE).

Terry began his love affair with stock-based compensation over 20 years ago applying actuarial disciplines to minimize the accounting cost of employee equity under ASC718, while also maximizing the perceived value to participants. Terry became one of the premiere experts on Performance Share programs and gained the nickname “Mr. Relative TSR”. Terry continues to focus on performance equity, and the mission to tighten the alignment between pay and performance.

Terry is very active in the equity community and has formerly served on the FASB Round Table on Employee Share Options and on the Executive Advisory Committee of the NASPP. Terry currently serves as the Chairperson of the Advisory Board of the Certified Equity Professional Institute (CEP) and the Society of Actuaries taskforce on stock option valuation.

Contact and more information

• Terry Adamson LinkedIn
• Infinite Equity

Information provided in this podcast is intended for informational and educational purposes only. Guests on the Own Up podcast may not be affiliated with JP Morgan Chase & Co. The podcast contains the views of a JP Morgan employee, which may differ from the views of JP Morgan Chase & Co., its affiliates and employees. The views and strategies described may not be appropriate for everyone. Certain information was obtained from sources we believe are reliable, but we cannot verify the accuracy of the content and we accept no responsibility for any direct or consequential losses arising from its use. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult a qualified professional.