Granting Equity beyond the C-Suite

Transcription

1 Granting Equity beyond the C-Suite May 25, :30 9:30 a.m. Amanda Flint, Principal, Mercer Cameron Hall, EVP, Canadian Client Services and Head of Global Marketing, Solium Tim Shanahan, Sr. Stock Administrator, Google Marie Williams, Director, Total Rewards, Barrick Gold

2 CPE Credits Continuing Professional Education (CPE) Credits are available! You will receive one (1) CPE credit after attending this session. You must attend the entire session to be eligible. In order to earn the available credit(s) for this session, you must see the room monitor before and after the session to get checked-in and out of the session. Electronic certificates will be ed to you a few weeks after the conference with the cumulative number of credits earned Solium is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Web site:

3 Panel Marie Williams Senior Director, Total Rewards Manages global total rewards program Tim Shanahan Sr. Stock Administrator Manages global equity plan Amanda Flint Partner, Global rewards practice International Consultant Cameron Hall EVP Solium Canada Manages Canada and Global Marketing

4 A Brand New Idea?

5 A few questions for you

6 HEALTH WEALTH CAREER Designing an international stock plan March 2017 Amanda Flint London

7 INTRODUCTION In order to do so there are a whole host of considerations and planning to do and plenty of support to help you along the journey. But let s look at how it all starts. Global Team Large sophisticated companies that operate internationally want their employees to feel part of a team and that team extends around the world. Shared Purpose In different cultures, in different countries companies want their staff to feel part of the global organisation and often have a range of initiatives aimed at achieving the feeling of being part of the same organisation with an overriding larger purpose. In This Together There is also the idea of joint purpose We are all in it together - and this can be combined with the sentiment we are all owners of this business and a natural next step is to implement a new share incentive arrangements. In order to do so there are a whole host of considerations and planning to do and plenty of support to help you along the journey. But let s look at how it all starts. MERCER

8 ONE DAY, IN A MANAGEMENT COMMITTEE MEETING... Listen up! I ve had this great idea! We are going to launch a stock plan for our employees all over the world! It will be great! Our employees just won t understand it! (Wonder if I will still get my Hawaii trip in July?) There is such a thing as the law around the world regulation - currency I could go on! Maybe I should organise golf with the CEO and just explain why we should stick to cash Good grief, how much is that going to cost? Nope. Not enough time, not enough admin resources! I have it here in black and white! Hold up, mister! What will our shareholders think? So now let s look at the why MERCER

9 WHY DO COMPANIES WANT TO IMPLEMENT GLOBAL STOCK PLANS? Getting a stake in a global business for employees is empowering and inspiring for employees. 1) Examples: Highly engaged employees are 87 percent less likely to leave their jobs than their disengaged counterparts (the Conference Board) Companies with high levels of engagement saw an overall 3.74 percent increase in operating margin; and a two percent increase in net profits (ISR) High levels of employee engagement corresponded to increases in customer engagement levels (Oakley) Engaged employees are far more likely to suggest or develop creative ways to solve customer problems and to improve management or business processes (Gallup) MERCER

10 WHAT QUESTIONS SHOULD THE COMPANY CONSIDER? Strategic Issues How would a share plan support the organisation s wider vision/business objectives? How do share plans fit into the employee value proposition and how does it fit into employee total reward? Global Consistency Should the plan be used tactically in selected key markets only? Should the plan be rolled out in waves, or all at once? Should any new plan be contributory/not/or a combination? (e.g. free shares or purchase shares with a match or discount)? MERCER

11 Panel Discussion: Strategic Intent

12 HOW CAN THE PLAN ROLLOUT? Structure Should any new plan be contributory/not/or a combination? (e.g. free shares or purchased shares with a match or discount)? Should the plan be a one-off/ongoing/combination? Does the company want to commit at this stage as it is a big commit? Communication How do we ensure that the corporate messaging about the company s brand is understood by participants? How would you create a high profile communication campaign, or a more local approach, such as targeted workshops by country? How would you measure the success of such a plan? MERCER

13 Panel Discussion: Global Compliance and Tax

14 ISSUES FOR EMPLOYEES I m not sure that I understand stock why should I want it? How much will it cost me? Parent company shares are in $ - how much is it to convert it? What happens if I leave? It sounds too good to be true, what s the catch? What is the risk to me? Will I have to pay tax? Or file a tax return? Who do I ask if I have questions? Can I vote my stock? Will I get distributions? How do I get my stock? Where is it? How do I access it? MERCER

15 Panel Discussion: Employee Experience and Engagement

16 Closing Thoughts

17 Questions?

18 Contact Us Amanda Flint Principal Mercer Cameron Hall EVP, Canadian Client Services and Head of Global Marketing Solium Tim Shanahan Sr. Stock Administrator Google, Inc. Marie Williams Director, Total Rewards Barrick Gold Corporation