A Guide to Executive Equity Compensation

Post contributed by

May 15, 2024

Global Shares

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Executives play a vital role in the leadership, strategy, and operations of both public and private companies, which is why for HR and comps and benefits teams, attracting and retaining these key players is a top priority.

A key factor in their retention will be the nature of the benefits you offer them, with the equity compensation component of any offering often a central part of the jigsaw and a unique point on which employers can set themselves apart from the competition.

In this free eBook , we’ll go through a number of key considerations, such as:

• Executive equity compensation plans for private and public companies

Staff retention lies at the core of success. That can include developing long-term goals, maintaining consistency, and establishing a sense of continuity and stability. As such, you will want to keep your top performers satisfied in their work and content to stay with you to help you achieve your business goals well into the future, even if competitors reach out to them.

• Retention over replacement: The benefits of golden handcuffs

When you lose a key executive to competitors, it constitutes a setback on many levels. You not only lose an individual with expertise, know-how and perhaps intimate knowledge of your business operations, but a rival company gets to benefit from all of that—a significant double blow in of itself.

When you retain the services of senior executives, not only do you continue to benefit from their talent and experience, but you deny any would—be suitors from gaining access to them—a double benefit.

• Four things your executive equity comp plan may be missing

Looking at trading plan (10b5-1), addressing blind spots, greater choice, and charity and tax-efficiency.

• Handling tax on executive compensation plans

Equity compensation awards bring with them the potential for significant windfalls, depending on the conditions attached and type of equity involved—but they are not without tax implications. It is important that all parties are aware of the tax implications of whatever is being proposed when negotiating compensation packages.

• Rule 10b5-1: A defense against insider trading

Falling significantly into the corporate governance space, all companies that issue equity to employees and officers need to have an insider trading policy and controls in place. Often this policy will include Rule 10b5-1 guidelines.

• The intersection of financial planning, executive services and equity compensation for executives

Considering how the role played by executive services teams in supporting HR and comps and benefits departments has grown in importance over recent years.

Find out more

At Global Shares, a JP Morgan company, we believe that involving people in the success of the company via participation in equity-based incentive plans is the best way to motivate them to achieve success and create a stronger company both now and into the future.

We provide businesses of all sizes with an all-in-one equity compensation management solution. We handle all the equity award administration so you have nothing to worry about.

Download your free guide here.

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Please Note: This publication contains general information only and Global Shares is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. The Global Shares Academy is not a substitute for professional advice and should not be used as such. Global Shares does not assume any liability for reliance on the information provided herein.

Global Shares is a trading name of Global Shares Ireland Limited (“Global Shares Ireland”), a company registered in Ireland, registration number 412396 with its registered office at Unit 2, Building D, West Cork Technology Park, Clonakilty, Co, Cork, Ireland which provides share plan administration services and software. Global Shares Inc. (“Global Shares US”) is incorporated in Delaware and provides share plan administration services and software to certain U.S. Companies.

For securities traded in United States markets, Broker Dealer Services are provided by Global Shares Financial Services, Inc. (“GSFS”), Member FINRA/SIPC, 575 Washington Blvd, Floor 9, Jersey City, NJ, 07310-1616, (646) 968-0653. Check the background of Our Firm on FINRA’s BrokerCheck.

Global Shares Trustees Ireland Limited, Global Shares Trustees (UK) Limited, and Global Shares Trustees Company Limited (collectively, the “Trust Companies”), are Irish and UK trust companies that provide limited trust services for corporate share plans.

Global Shares Execution Services Limited (“GSESL”) is licensed to conduct investment services business under the Investment Services Act as authorised by the Malta Financial Services Authority (“the MFSA”) pursuant to licence number GSES-IF-14206. The Company offers receipt and transmission of orders and nominee services under its provision of business. The registered address is at 171, Old Bakery Street, Valletta, VLT1455, Malta.  Global Shares Ireland, Global Shares US, GSFS, the Trust Companies, and GSESL are affiliated companies and all under the common control of JPMorgan Chase & Co.

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