A stock option is the most popular form of equity companies offer to their employees as part of their compensation packages. To manage employee stock options can be simple if you bring in the right partner.<\/p>\n
With over 15 years of experience, Global Shares deals with equity plans for large and small, private and public companies whose locations and employees are spread across the globe \u2013 this means we deal with every type of stock option grant imaginable and global tax\/regulatory\/compliance implications.<\/p>\n
Today, we\u2019ll show you how to leverage our employee stock option software to\u00a0simplify the administration during:<\/strong><\/p>\n This huge range of stock option grants through our stock option module means clients can display to participants and receive reporting on their stock option grant data the way they want it.<\/p>\n Track every type of stock option and administer them the way you want.<\/p>\n Stock option vesting is the process of gaining 100% ownership of an option. When employees are granted stock options on day one, they don\u2019t have full control over it until the vesting period has passed. Then, it can be released to the participants.<\/p>\n In our system, you can define the\u00a0vesting schedule<\/strong>\u00a0for your stock option grant. Whether it\u2019s a simple 3-year 100% cliff vest or a more complex 48-month 2.08% vest with associated rounding, you can set it up for your stock option. You can also define\u00a0vesting weighting<\/strong>\u00a0\u2013 the amount of the award to vest each year. (Note: vesting schedules can also be set up as performance-based for performance stock.)<\/p>\n Once stock option vesting has been set up, then the automated vesting service will kick-off. It means that the vesting schedule associated with the option grant is updated continuously to ensure a correct live balance at all times.<\/p>\n Reports are also directly tied into this vesting service so that stock option reports are always reporting the correct vested and unvested balances.<\/p>\n Participants will also see the same on their employee portal (i.e. Equity Gateway \u2013 a multi-lingual and multi-currency user interface allowing participants to have 24\/7 online access to their awards) where they know the number of vested and unvested shares, as well as intuitive statements showing future vesting coming their way with associated monetary values of those vesting stock option grants.<\/p>\n An exercise of stock options occurs when a participant takes up their right to buy the vested shares at pre-set exercise price (or called strike price) after the vesting period. At the time of exercise, there\u2019re some costs participants need to pay:<\/p>\n As an industry-leading stock option management provider, Global Shares intuitive \u2018Exercise Wizards\u2019 have never been easier. With \u2018Exercise Wizards\u2019, we work with you together to define exercise windows<\/b> (the period when participants can exercise their awards through the employee portal) and blackout periods<\/b> (the period when the company\u2019s employees are prohibited from trading its securities).<\/p>\n At the same time, participants are clear on what\u2019s available for them to exercise when they log in to their accounts. They are guided through the process with our online \u201cExercise Wizard\u201d when they decide to exercise. Our stock option management software facilitates the following exercise methods (the way participants can use to complete exercise transactions) for all stock option grants:<\/p>\n 1. Monetary payment (Hold all) 2. Sell to Cover (STC) So, participants aren\u2019t required to pay for the shares upfront like in the first idea.<\/p>\n 3. Exercise & Sell All 4. Withhold to Cover Exercise Math is not everyone\u2019s strong suit so we\u2019re here to simplify it.<\/p>\n Everyone knows how important it is to accurately file your income tax return. Our employee stock option software automatically calculates accurate transaction taxes for your participants.<\/p>\n The system can apply taxes by setting up tax rates and codes assigned to participants or participant groupings.<\/p>\n If provided with applicable income and tax payment information by you, we can feed the system what is needed to automatically calculate accurate transaction taxes.<\/p>\n You\u2019ll be assigned a dedicated client manager (CM) at a corporate level and a dedicated team of share plan analysts.<\/p>\n Your CM will provide you with an assurance of a smooth transition from our tendering for the project, to the implementation of your plans on our system, right through to a cooperative, working relationship.<\/p>\n Your share plan analyst team will undertake all the necessary administration and record-keeping tasks associated with the operation of your share plans in accordance with the relevant tax legislation and regulatory body requirements. Some of the high-level services are:<\/p>\n Ensuring your participants understand and appreciate what they are receiving when they are granted stock options is paramount to what Global Shares does.<\/p>\n To achieve this, we offer 24\/5 human support in their local language and provide an extensive range of resources:<\/p>\n What are Modelling Calculators:<\/strong><\/p>\n Modelling calculators are available in the employee portal to give participants an insight into their potential gains if they want to sell their awards. It let them test out a sale without commitment.<\/p>\n The calculator provides estimates of taxes, exercise costs and net proceeds, ensuring that when you\u2019re ready to sell, you can make the right decision on how and when they trade.<\/p>\n \t\t\t\tShow\t\t\t\t<\/p>\n To wrap up, here is a summary of our services that can help you with employee stock option administration.<\/p>\n Global Shares provide employee stock option management software and support services for companies all over the world to alleviate all past administrative complexities thanks to our accessible, simplified, user-friendly software.<\/p>\n Transform your stock option plan administration software with our industry-leading technology. Our experts would be delighted to discuss your stock plan requirements.<\/p>\n Have questions about our stock option software and services? Request a free demo to find out more about how we can help you take your equity compensation plans to the next level.<\/p>\n\n
Granting stock option awards<\/b><\/h2>\n
USA Option Grant Types:<\/h3>\n
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UK Option Grant Types:<\/h3>\n
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Rest of World Option Grant Types:<\/h3>\n
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Setting vesting schedule & weighting<\/b><\/h2>\n
Admin\u2019s Side:<\/u><\/h3>\n
Participants\u2019 Side:<\/u><\/h3>\n
Setting exercise methods for stock options<\/b><\/h2>\n
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Admin\u2019s Side:<\/u><\/h3>\n
Participants\u2019 Side:<\/u><\/h3>\n
The participant uses their personal funds to cover the associated costs (exercise, fees and applicable taxes). He\/she would pay the costs either by check, wire transfer or payroll and would then receive the shares of company stock.<\/p>\n
The goal here is to cover the costs associated with exercise, fees and applicable taxes by selling shares equal to the costs. The remaining stock balance will then be issued to the employee.<\/p>\n
The goal here is to generate an immediate cash balance.
Like idea 2, There is no requirement to make an upfront payment as the associated costs (exercise, tax, fees etc) are paid with the proceeds of the sale of shares. The net proceeds in cash are then distributed to the employee.<\/p>\n
Typically used by private companies this exercise method is similar to sell to cover except that your company keeps the number of shares equal to the associated costs prior to award issuance.<\/p>\nAutomating tax calculation<\/b><\/h2>\n
Admin\u2019s and Participanits\u2019 Side:<\/u><\/h3>\n
Getting support for stock option administration<\/b><\/h2>\n
Admin\u2019s Side:<\/u><\/h3>\n
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Participants\u2019 Side:<\/u><\/h3>\n
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Summary of our employee stock option software<\/b><\/h2>\n
General:<\/u><\/h3>\n
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Employee Portal:<\/u><\/h3>\n
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Vesting:<\/u><\/h3>\n
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Exercising:<\/u><\/h3>\n
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Taxation:<\/u><\/h3>\n
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