How to Successfully Select and Leverage Your Service Provider

Transcription

1 How to Successfully Select and Leverage Your Service Provider Session 1.6 Thursday 15 September 2011

2 Agenda Introductions How to Select a Service Provider How to Leverage your Service Provider 2

3 Presenters Scott Barrall, Senior Manager, Deloitte Tax LLP Patricia Boepple, SVP Global Operations, Global Shares Steve Madeira, VP, Operations, Equity Administration Solutions, Inc. Thomas Parnaby, Director, Client Management, UBS Financial Services Inc. Clinton Shoap, Equity Compensation Manager, Cargill 3

4 Selecting a Service Provider Issuer Perspective Internal Reflection A good partnership requires compatibility, so consider: Culture is their style a good match for you? Strategy does your company change direction frequently? Pace how quickly does your organization move? Commitment can/will they match your level of commitment? Involve internal functional partners in the process How will processes and reporting intersect 4

5 Selecting a Stock Compensation Tax Provider Specialization in Tax, Broad non-tax Issue Awareness Geographic Coverage and Consistency of Stock Expertise Centralized Service-Delivery Management Consistency Practicality Scalability for all levels and functions of interested personnel Service Offerings Consulting Services Outsourced services and delivery centers 5

6 Selecting a Stock Plan / Brokerage Provider Compare like services Can the provider's capabilities meet your current and future needs? How will the provider meet those needs? Is it fully automated and simple to execute? Does it require extensive resources to complete? People Make the Difference Functional expertise, defined roles, situational awareness Specialization with Trading and Insider Services Defined trading and administrative costs Pre-clearance and assistance with Form 4 filings Pre-arranged trading plans (10b5-1) 6

7 Selecting a Stock Plan Platform Flexibility / Adaptability Know your Reporting/Disclosure Requirements Know your Interfaces Broker Interaction Participant Access / Communication I/F to other data sources (i.e. Payroll) Hosted vs. On-Site Know your Plan(s) 7

8 Selecting an Administration Service Provider Make it a team project Requirements need to be fully understood Can the provider deliver what you need/want? Can they commit to your time requirements? Know the Provider SAS 70 or SSAE 16 Type 2 Report Experience and Other Credentials Hours of Availability / Support Understand Services Available 8

9 Leveraging a Service Provider Issuer Perspective Communicate Meet regularly to discuss your expectations and their performance (provide honest feedback) Put them in a position to succeed Include them in key issues so they can provide the service you need (put them in a position to succeed) Give them an opportunity to develop solutions you didn t know existed Be open to new ideas/products Leverage this relationship in every way possible to maximize value 9

10 Leveraging Your Stock Compensation Tax Provider Send Information at the Outset Plan, Subplan, and grant agreement documents, prospectus Term sheets & participant metrics: headcount and $ value Frequently Pick up the Phone, then Quick context call followed by the more focused Centrally Archive and Update, Don t Substitute New for Old Involve your associates: develop ingrained habits, share the effort Keep Functional Equilibrium: Tax, Admin., HR, Legal, Finance Tax Does Matter: Create a Wagging Tail, not a Shaky Dog 10

11 Leveraging a Service Provider Broker Perspective Understand Outsourcing Well defined roles & responsibilities are critical Setting early expectations Flexibility vs. Risk Early and continuous communication leads to greater flexibility and less risk. Consider utilizing what has worked for other companies Continuous Dialogue Ensure there is a process for Issuer and Participant feedback Maintain awareness of product and technology enhancements 11

12 Leveraging your Stock Plan Platform Own the Process It s your data It s your reputation It s you who will ultimately pay the price for errors Use the Tools/Training Help Support Help you Ask for Regular Review (what is new) 12

13 Leveraging Your Plan Admin Service Provider Build a partnership Define requirements and agree processes Communicate regularly and provide feedback Understand and meet your deliverables Understand and utilize all capabilities of the provider Conduct regular reviews of processes to improve efficiencies and meet new requirements Document and comply with your requirements of the provider s audit reports 13

14 14 Questions?