Navigating year-end requirements: pro tips for stock plan admins

Reliable data, working well with internal stakeholders, knowing the relevant regulatory requirements and being organized – those are some of the key recommends singled out by equity professional Georgina Lai for employee stock plan admins looking to successfully navigate reporting and auditing challenges associated with financial year-end.

With more than 15 years in employee stock plan administration, with companies large and small, public and private- Georgina is currently advising various companies on product, equity, and business strategies and assisting with various corporate transactions, including M&A work and IPOs. She previously led equity programs at companies including Pinterest, Reddit, and Instacart, and worked on Meta’s (formerly Facebook) transition from private to public.

Data integrity

“Many established companies have automated feeds going in and out of their equity platform, but when was the last time you checked those feeds? Have you audited those feeds?” Georgina says of where to start when looking to avoid pitfalls and problems.

As well as recommending a regular auditing schedule of your data, Georgina emphasizes the importance of correctly handling whatever changes are detected during that process.

“You need to ensure that your data feeds are working as you expect them to, and that any changes are captured and reflected accurately in your stock administration system,” she says.

One of the reasons Georgina recommends frequent data audits is to ensure you have up-to-date contact details for plan participants – particularly important for companies who are offering equity awards to a global workforce.

“It can be a major challenge to find out where people are working from these days, especially if you have a hybrid or remote model,” she says.

Stakeholder co-ordination

The need for stock plan administrators to have open lines of communication with stakeholders across the business is of vital importance.

“Admins work very closely with HR and the payroll team, so they are my first go-to. Next would be the tax team. (Year-end) is a good time to connect with them and understand their timelines so that you can prepare yourself and your team accordingly,” she says.

Aside from the practical benefits of liaising closely with others, Georgina also points out that effective communication between different teams can in of itself encourage positive outcomes.

“I think when you’re proactive with other stakeholders like that, it shows great partnership and can help to strengthen those relationships,” she says.

Changing regulatory requirements

Staying on top of regulatory compliance, tax laws and reporting requirements is a year-round responsibility for stock plan administrators. There is no agreed timeline when changes occur in different jurisdictions, and not all countries follow the same calendar for tax reporting. This isn’t just a best practice, it’s a necessity, as failing to stay compliant can result in costly fines or other penalties.

The result, as Georgina points out, is that handling equity compensation across multiple countries poses its own set of challenges.

“Usually, I’ll partner with an outside accounting or law firm to help with the relevant filings, as well as working with the internal teams. There is an element of being a project manager in this, as you check in with your cross-functional teams to remind them when a filing is coming up, to ensure that everyone is on the same page,” she says of her approach.

On a related point, Georgina emphasizes the importance of ongoing education and networking with peers in the industry.

“I really recommend going to a GEO conference or to NASPP. That’s often where you’ll get the information you need to know (on any changes or regulatory updates) and you can consult with your peers and see how they handle their own preparations,” she recommends.

Be organized

Georgina strongly recommends creating and maintaining checklists.

“I’m a big checklist person. I will develop a bunch of checklists over time and when I move to a different role or different company, those checklists come with me and I modify them as necessary,” she said.

While checklists can reference many elements of the overall job, Georgina makes a point of stating that she will include specific references to the timing of certain admin-related activities.

“For example, I will say to all my business partners that on day one of month-end you’re not going to get anything from me. That’s the day I’m double checking all the data and auditing it to ensure accuracy before I start running reports. That gives me a day to correct anything that may be incorrect. Assuming that goes well, day two is when I start running the reports for the accounting team. Day three is when I run reports for the tax team, so they know when to expect information from the equity team,” she says.

Listen to the full podcast episode here.

What next?

If you want to speak to someone about employee equity compensation or want to learn more about how J.P. Morgan Workplace Solutions can work with you, contact us today.