Employee stock purchase plans

Transcription

1 Employee stock purchase plans

2 Your company s success is no accident. It is a result of the calibre and expertise of your employees. For this very reason, a growing number of organizations are looking for innovative ways to increase employee participation and motivation. Attract, motivate and retain the right people with an Employee Stock Purchase Plan (ESPP) and Equity-based Compensation Plans 1. An ESPP provides your employees with the potential opportunity to participate in the growth and success of your company. By encouraging employees to become shareholders, an ownership culture is created and employees, who now have a stake in their company s success, work with greater interest. 1 Equity-based Compensation Plans administration is offered through an arrangement with Buck Consultants Limited

3 Help your employees share your success with an ESPP: Create unique investment potential for employees, which encourages engagement within the savings program (or registered savings program) Provide employees with an ESPP and Equity-based Compensation Plans that allow them to potentially benefit from the financial success of the company Incorporate the ESPP seamlessly into your overall employee benefits package Allow employees to accumulate ownership stakes in the company with small fractional share purchases which is generally not available outside of an ESPP Increase cost effectiveness for the plan sponsor, as company contributions (if applicable) and administration fees are tax deductible within an ESPP Enlarge your shareholder base by encouraging ownership amongst a key stakeholder group your employees We have been innovators in the marketplace for many years and our leadership extends to: Member services we were the first insurance company to establish a dedicated member services team over a decade ago. We have extensive experience in communicating information about ESPPs both in person, via seminars and over the phone. At all times your employees are speaking with licensed, salaried professionals who are well-versed with the particularities of your ESPP. Legislation and compliance our expertise in this area is at the centre of what we do. Over the years we have developed a reputation as the pension company and this knowledge guides us in helping you manage your program to meet all your governance needs. Our systems are robust and flexible to meet your unique needs. We do not offer an off the shelf solution for ESPPs and Equity-based Compensation Plan. We offer both real time and batch withdrawals online through the member VIP Room Through an arrangement with Buck Consultants Limited, we now offer the administration of various Equity-based Compensation Plans, such as Stock Option Plan, Restricted Share Units, Deferred Share Units, Performance Share Units, Share Appreciation Rights, which can be integrated into your current stock/savings plans. Employees can access information on their Equity-based Compensation Plans through a secure link in our VIP Room. We have the expertise and experience to make your ESPP and Equity-based Compensation Plans a success. Group Savings & Retirement represents over 50% of the Company s premiums and deposits, making this our core business. Employee stock purchase plans 01

4 2 ESPPs that offer real time withdrawals must be set up through a trust arrangement and a book entry method. We offer the flexibility to choose between either book or unitized entry method for share ownership: Book entry method Members directly own company shares (including fractional numbers) Assets = shares of the company only Dividends reallocated to the members based on the ownership date and used to buy additional shares Fees paid by the employer are tax deductible for non-registered plans only Member account value = share price multiplied by the number of shares owned Unitized entry method Members indirectly hold company shares through their ownership of units in a specially created stock fund Assets = shares of the company only plus cash component Dividends may be reallocated to members based on the ownership date, and used to buy additional units, which convert to more shares Fees paid by the employer are tax deductible for non-registered plans only Member account value = dollar value, which converts into number of shares owned, using market price Our flexibility also extends to offering two unique contractual arrangements: Insurance contract Available for the unitized entry method only Contract is between Standard Life Canada and the plan sponsor Applicable to registered plans only Trust arrangement 2 Available for book and unitized entry methods Available for registered and non registered plans Fund created and administered by Standard Life Trust Company, as a trustee (unitized) Members own the shares (book & unitized) Members can exercise the voting rights of the shares (if plan text permits) Capital gains/losses are assigned to members who sell shares Transfers in kind to or from another custodian have no tax impact for members 02 Employee stock purchase plans

5 Our administrative services are tailored to the specific options you choose: Issuing certificates Book entry method Members receive full shares in form of certificates Fractional portion is payable in cash at closing share price value Unitized entry method Dollar value is divided by closing share price to determine the total number of shares held, and is then provided to members in a certificate Any residual amount is paid in cash Members can make tax-free transfers of share certificates in their name Registered plans: transfer to self-directed RRSP/LIRA Non-registered plans: transfer to broker account electronically Payment of dividends Book entry method Dividend rate obtained from the plan sponsor s Board of directors Shares assigned directly to member account Unitized entry method Dividend rate determined in accordance with the number of units Cash value added to member account Used to increase unit value or buy additional units (as per plan sponsor s request) Vesting Our system supports all of the major vesting options, including cycle, annual and rolling. We administer your ESPP the way you want. Our flexible systems and administrative solutions are adaptable to meet your unique needs. Employee stock purchase plans 03

6 Member statements are integrated with the rest of the retirement program, so the whole program comes together for the member in one place. Member statements can be specific to stock only and provide transactional details, purchase price, withdrawal price, etc. Furthermore, we provide the following information: Book entry method Number of shares owned Closing share price Average purchase price Unitized entry method Number of units owned Unit value Equivalent shares for Trust contract Detailed reporting is provided to keep you informed and on top of all governance and compliance issues. The following reports are available: Insider trading report Transaction report Plan sponsor statement, consolidated with all your retirement plans by subgroup and plan types Member statements available in a summary and detailed format Making sure members understand the value of the program and the benefits attributable to them is important to you, to members and to us. 04 Employee stock purchase plans

7 3 Not all plans allow for Real Time withdrawals. Ask your Standard Life representative for details. Our people All ESPPs are administered by a dedicated team which supports plan sponsors in all aspects of their ESPP, including transactions, compliance and governance matters within their retirement program Our holistic approach encompasses everything we do, so our dedicated ESPP team will also administer your entire retirement program Our flexible systems The same record keeping system is used for the administration of your ESPP and retirement program, so everything fits seamlessly together System controls include: A history-based system, without archiving so that we can access past transactions easily and quickly An authorization process for all financial transactions Unique section of the record keeping system for the ESPP which allows for: Crossing within the plan or on the market Settlement is the next day (T+1) Allocation Settlement is the next day (T+1) Online withdrawals for employees through the VIP Room. They can select the method of withdrawal and settlement options: Real time orders 3 Real time limit orders 3 Batch orders Online transfers between stock plans (in Non registered, TFSA and RRSP plans) for employees through the VIP Room. Our robust and flexible reporting capabilities meet... Your unique plan needs and support governance activities Your reporting requirements through multiple formats Your and your employees need to see a consolidated view of the entire retirement program Our Equity-based Compensation Plans Administration offered through an arrangement with Buck Consultants Limited, a leader in these unique compensation arrangements Integration of the member experience with single sign-in to the VIP Room to manage their group savings and retirement program and Equity-based Compensation Plans We understand what it takes to make your ESPP a big success. Employee stock purchase plans 05

8 Retirement Investments Insurance Find out more For more information, contact your plan advisor or any of our offices in the following cities: Halifax Québec Montréal , Ext Toronto London Calgary Edmonton Vancouver The Standard Life Assurance Company of Canada Standard Life Assurance Limited GE10372K GS Standard Life