Schwab Equity Award Center Help Guide. FAQs on managing your company equity awards

Transcription

1 Schwab Equity Award Center Help Guide FAQs on managing your company equity awards

2 Table of Contents GETTING STARTED... How do I open my Schwab account? How do I log in to my Schwab account? What s the difference between a Schwab brokerage account and the Equity Award Center? How do I navigate the EAC? Where do I see details of my award? How do I accept a grant? How do I make a tax election? How do I navigate my brokerage account? STOCK OPTIONS...8 How do I exercise stock options? What are the different stock option exercise methods? EMPLOYEE STOCK PURCHASE PLANS (ESPPs)...0 How do I enroll in the ESPP? Where can I see how much I have contributed toward the next ESPP purchase? How do I change my ESPP contribution election? How do I sell my ESPP shares? RESTRICTED STOCK AWARDS (RSAs) AND RESTRICTED STOCK UNITS (RSUs)... Where do I find my vested RSA/RSU shares? How do I sell my vested RSA/RSU shares (in the EAC)? How do I sell my vested RSA/RSU shares (in a Schwab brokerage account)? ii

3 COST BASIS...7 How do I find the cost basis details for my RSA/RSU shares? How do I update my cost basis? WHERE TO FIND ACCOUNT STATEMENTS, FORMS, & TRANSACTION HISTORY... 9 Where do I see historical transactions? Where do I find statements and tax forms? MOVING MONEY AND TRANSFERRING ACCOUNTS... Can I move money to or from my Schwab account? How do I transfer an outside account to Schwab? FOR EMPLOYEES LIVING OUTSIDE OF THE UNITED STATES... How do I recertify my W-8BEN? iii

4 Getting started HOW DO I OPEN MY SCHWAB ACCOUNT? Go to eac.schwab.com. Click on Get Started. Follow the online prompts. For assistance, watch these helpful videos: How to Open Your Schwab Account (United States) How to Open Your Schwab Account (Non-U.S. Accounts) For international accounts, read our step-by-step guide. Call Stock Plan Services at

5 Getting started HOW DO I LOG IN TO MY SCHWAB ACCOUNT? Go to eac.schwab.com. Select Log in at the top of the screen. Enter your login ID and password. Press the Log In button.

6 Getting started WHAT S THE DIFFERENCE BETWEEN A SCHWAB BROKERAGE ACCOUNT AND THE EQUITY AWARD CENTER? The account you open is actually a brokerage account. The Equity Award Center (EAC) is a part of the brokerage account and is dedicated to equity awards from your company. The brokerage account holds assets from vested restricted stock or exercised stock options. The EAC shows all grant information and holds shares purchased through the company ESPP. The brokerage account is a full-service account for U.S. residents. You may use the account to purchase other assets. Residents of other countries may be eligible to upgrade to a full-service account. HOW DO I NAVIGATE THE EAC? Use the navigation bar at the top of each web page to access your awards, view vesting schedules, and place transactions on your awards. Additional links are found on every page to help you drill deeper into content or jump to a new area.

7 Getting started WHERE DO I SEE DETAILS OF MY AWARD? Choose Equity Awards from the navigation bar on the Accounts page. Follow links under Equity Today for details on each award type.

8 Getting started HOW DO I ACCEPT A GRANT? Choose Equity Awards from the navigation bar on the Accounts page. Review each item under Notifications and select the green Accept button. Select the Grant Agreement link. Read your grant agreement and then select the Accept button. Selecting Accept will generate a confirmation message. Click Done to close. 5

9 Getting started 5 HOW DO I MAKE A TAX ELECTION? 5 Choose Equity Awards from the navigation bar on the Accounts page. Under I Want to, select View Classic EAC. Choose the My Equity Awards tab. Click the link in the Tax Election column of the table to elect the taxation method. 6

10 Getting Started HOW DO I NAVIGATE MY BROKERAGE ACCOUNT? Use the navigation bar at the top of each web page to access your accounts, trade securities, conduct research, and more. Additional links are found on every page to help you drill deeper into content or jump to a new area. 7

11 Stock options HOW DO I EXERCISE STOCK OPTIONS? Choose Equity Awards from the navigation bar on the Accounts page. Select the green Trade button at the top right of the EAC dashboard. On the EAC trade ticket, select Symbol (if there is more than one) and then Strategy. To start your order, first indicate the exercise type: Exercise and Sell or Exercise and Hold or Sell and Hold if you wish to do a combination of the two. Enter the quantity of options you wish to exercise Choose a market or limit order. If you are placing a limit order, select the timing of your order Day Only or Good Until Cancelled. Good-until-cancelled orders will remain in the system for 60 calendar days. It will expire after 60 days if the order has not executed. It is your responsibility to cancel the order if your company trading window closes during this time. Once you have entered all the details for your stock option exercise, select the Review Order button. Confirm the instructions you entered, review any order messages that may be presented, and make any desired changes. To edit your order, select the Change button. To place your order, select the Place Order button. Your order confirmation will appear on the next screen. 8

12 Stock options WHAT ARE THE DIFFERENT STOCK OPTION EXERCISE METHODS? Exercise and hold Use this method when you want to own shares in your company s stock. You will need to have the funds to pay the exercise price. If these are non-qualified stock options, you will also need to pay taxes on the spread at the time of exercise. Shares will be deposited into your Schwab account. Sell to cover Use this method when you want to own shares in your company s stock, but do not have enough funds to pay the exercise costs. You must sell enough shares to pay the costs and net the rest of the shares, which will be deposited into your Schwab account. Sell all Use this method when you want to sell all of your options for cash. The cost of exercise and any taxes will be removed from the proceeds and the net proceeds will be deposited into your Schwab account. 9

13 Employee stock purchase plans (ESPPs) HOW DO I ENROLL IN THE ESPP? Choose Equity Awards from the navigation bar on the Accounts page. When your company has open enrollment, you will receive a notification. Select the green Enroll button and follow the onscreen prompts. 0

14 Employee stock purchase plans (ESPPs) WHERE CAN I SEE HOW MUCH I HAVE CONTRIBUTED TOWARD THE NEXT ESPP PURCHASE? Choose Equity Awards from the navigation bar on the Accounts page. Select Manage ESPP under Equity Today. Scroll down and click the View a detailed contribution history link.

15 Employee stock purchase plans (ESPPs) HOW DO I CHANGE MY ESPP CONTRIBUTION ELECTION? Choose Equity Awards from the navigation bar on the Accounts page. Select Manage ESPP under Equity Today. Follow the online prompts. (Please note that some companies may limit your changes. You may not be able to make changes, or you may only be able to decrease your contributions or make a withdrawal. If this is the case, you will need to wait for an open enrollment window to make changes for subsequent ESPP offerings.)

16 Employee stock purchase plans (ESPPs) HOW DO I SELL MY ESPP SHARES? Choose Equity Awards from the navigation bar on the Accounts page. Select the green Trade button in the upper right corner. Enter order, identifying how many shares from each lot, order type, and timing of order.

17 Restricted stock awards (RSAs) and restricted stock units (RSUs) WHERE DO I FIND MY VESTED RSA/RSU SHARES? View your share position from both the Accounts > Summary page and the Accounts > Positions page.

18 Restricted stock awards (RSAs) and restricted stock units (RSUs) HOW DO I SELL MY VESTED RSA/RSU SHARES (IN THE EAC)? Choose Equity Awards from the navigation bar on the Accounts page. Select the green Trade button in the upper right corner. Enter order, identifying how many shares from each lot, order type, and timing of order. 5

19 Restricted stock awards (RSAs) and restricted stock units (RSUs) HOW DO I SELL MY VESTED RSA/RSU SHARES (IN A SCHWAB BROKERAGE ACCOUNT)? Select Trade on the top menu bar. Enter order, identifying symbol, action (sell), quantity, order type, and timing of order. 6

20 Cost basis HOW DO I FIND THE COST BASIS DETAILS FOR MY RSA/RSU SHARES? Choose Positions from the navigation bar on the Accounts page. Cost Basis and Gain/Loss will be listed, if available, for each security in your account. Click on numerical value to view cost basis by lot. 7

21 Cost basis HOW DO I UPDATE MY COST BASIS? You are unable to change the cost basis on covered securities acquired after January, 0. If you believe cost basis for a covered security is incorrect, please contact Schwab. If you are able to supply paperwork supporting a different cost basis, Schwab s cost basis team can make the update for you. You can update missing or previously edited information by clicking Missing on the Positions Summary and Lot Details pages associated with the lot for which the information is missing. To find the missing information, refer to your trade confirmations or brokerage statements or your previous broker. 8

22 Where to find account statements, forms, and transaction history WHERE DO I SEE HISTORICAL TRANSACTIONS? Choose the History sub-tab under the Accounts tab. Use the drop down to select the account for which you would like to view history. Select your date range. (You can also filter by symbol.) 9

23 Where to find account statements, forms, and transaction history WHERE DO I FIND STATEMENTS AND TAX FORMS? Select Accounts > Statements. For activity originating in the brokerage account, indicate the Document Type you are searching for and the Date Range, and then select Search. For activity originating in the EAC, use the drop-down menu and select Equity Award Center. 0

24 Moving money and transferring accounts CAN I MOVE MONEY TO OR FROM MY SCHWAB ACCOUNT? Yes, there are a number of ways to manage cash in your account, including: Wiring money in and out of your account Depositing or issuing checks Using Schwab MoneyLink, to conduct a safe electronic transfer of funds between Schwab and your bank, credit union, or other financial institution (U.S. only) For more information, please review the menu of Moving Money options. HOW DO I TRANSFER AN OUTSIDE ACCOUNT TO SCHWAB? You can now submit both full and partial account transfers of securities and/or funds from another financial institution into a Schwab account using our online transfer process. Choose Transfers and Payments from the sub-menu under Accounts. Next, select Transfer Account. Follow the online prompts.

25 For employees living outside of the United States FPO- Screen shot to come HOW DO I RECERTIFY MY W-8BEN? If your W-8 status has expired, you will be presented with an intercept page. Click the link on the intercept page and follow the onscreen prompts to recertify. Watch these helpful videos: How to complete the Substitute Form W-8BEN. How to complete the Online Electronic W-8BEN Form. How to complete the Paper Substitute Form W-8BEN. Review the international account opening guide specifically page for more information.

26 Schwab Stock Plan Services provides equity compensation plan services and other financial services to corporations and employees through Charles Schwab & Co., Inc. ( Schwab ). Schwab, a registered broker-dealer, offers brokerage and custody services to its customers. Information provided is not intended to be a substitute for specific individualized tax or legal advice. Where specific advice is necessary or appropriate, consult a qualified tax or legal advisor. Schwab does not provide tax advice. 09 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. CC7067 (09-9GLW) MKT06-00 (0/9)