Santa Clara University

6th Annual CEP Symposium
December 8, 2009

The Best One Day Event in Equity Compensation


Thank you to our sponsors for making this such a successful event: 

Premier Sponsors

  • Bank of America Merrill Lynch
  • BNY Mellon Shareholder Services
  • E*TRADE Corporate Services
  • Fidelty Investments
  • Transcentive - a Computershare Company
General Sponsors:
  • Charles Schwab
  • Morgan Stanley Smith Barney
  • OptionEase
  • Strategic Apex Group LLC
  • UBS Financial Services
Printing Sponsor:

Decor Sponsor: Global Shares

Organizational Partners: GEO, NASPP, NCEO

All of the presentations are in pdf format. There are two files for each presentation - one file is a pdf of the actual slides.  The other file is a pdf of the slides printed two per page.  Download either format by clicking on the title.

Keynote: Laura Grogan-O'Mara: Magic Eight Ball:  Predictions of the Future of Compensation from Washington DC- this presentation is not available for download

Breakout Session I

“We simply can’t manage our stock plans the way we did ten years ago.” Have you voiced or heard this sentiment lately? With the administrative and regulatory framework for stock plans growing more complex and riskier than ever, many companies are taking steps to eliminate unnecessary or inefficient administrative practices. Those adjustments may include tweaking plan design features that add little value to participants but drive unnecessary process. In this roundtable discussion, panelists will contrast outdated vs more current best practices, discussing techniques for streamlining administration and simplifying plan design with the goal of improving transparency and enhancing audit processes. Topics include:
  • Simple changes that simplify administration with little or no impact to participants
  • ESPP designs that limit expense and boost participation rates
  • Building a case for making changes
  • Effective communications practices that improve the participant experience and enhance perceived value
  • Insider processing and compliance procedures
  • Scope of responsibility of the stock plan administrator. 
Panelists: Hal Lorton, CEP- Fidelity, Elizabeth Dodge, CEP - Stock & Option Solutions, Rachel Murillo, CEP - NASPP, and Kimberly Hackman, CEP –Starbucks

Sure…it rhymes…but is there anything splendiferous about IFRS? At least one thing - this session! This session will give administrators some practical guidance on what they should be doing now to prepare themselves and their company for IFRS. From how to start managing data, reviewing your compensation and administration practices, working with vendors and the tools of the trade and ideas on what the transition will look like. Panelists will include the all-important view from a stock administrator’s chair, an accounting firm, a vendor and even a crazy old guy who feels accounting standard changes “in his bones.” Panelists: John Hammond, CEP - Transcentive, Keyoor Mankad, CEP -, and William Murphy, CEP - Ernst & Young
With the current market instability, some experts predict that the market may see an unprecedented number of mergers and acquisitions - fire sale prices on market share or new products! Are you ready to acquire or be acquired? Do you understand the different types of mergers, the various treatments of equity and their ramifications? Do you have a clear understanding of the accounting ramifications? How do you simplify the administrative challenges of these transactions? This panel of experts will provide a high-level overview of the various types of combinations, the different treatments that stock plans may receive, the legal considerations of these transactions, a plain English explanation of the accounting for mergers and the real-world "gotchas" that can significantly impact your administration (if you're not ready for them). Panelists: Laura Reis, CEP - Stock & Option Solutions, Renee Deming - Cooley Godward Kronish LLP, Ellie Kehmeier - Deloitte, and Jon Burg - Radford

Breakout Session II

  • Charging Forward with Chargebacks: Corporate Tax Deduction Issues When Extending Equity to Foreign Subsidiaries
Securing a corporate tax deduction globally for equity awards has become extremely challenging in light of the recent changes in accounting (GAAP vs. IFRS) as well as the increase in audit activity by international tax authorities. This timely topic focuses on the basics of chargeback arrangements, including the ability to secure a corporate tax deduction, cash repatriation and other related issues such as: accounting, audit experience and specific country challenges. Presenters will identify pitfalls for companies to look out for as well as suggestions as to how to administer the chargeback process and effectively manage the corporate tax deductions. Any company offering equity to foreign subsidiaries can't afford to miss this critical session. Panelists: AmyLynn Flood - PricewaterhouseCoopers, Marlene Zobayan, CEP - Rutlen Associates LLC
  • Designing an Oscar Worthy Performance Award Program: Trends, Challenges & Practical Implementation
In a time of increased regulatory, media and shareholder scrutiny, Performance Awards are becoming a more important part of the equity compensation package. The presentation will discuss industry trends in executive and non-executive performance-based compensation, design considerations, the various type of performance measurements (e.g., TSR, etc.), the pros and cons of different plan types, and the discuss some of the more complex administrative issues related to managing a performance award plan along with practical implementation tips. Panelists: Fred Whittlesey, CEP – Hay Group, Aaron Boyd - Equilar, and Barbara Richley, CEP - E*TRADE

  • Equity 2.0: Embracing Technology to Accomplish More in a Virtual World
The equity compensation market has changed dramatically over the last several years due to changing regulations. However, traditional technology applications have been slow to respond. The next generation of stock plan administrators will be exposed to new tools such as instant messaging, virtual workspaces, blogging and social media. Equity compensation technology will need to embrace these new features and be ready for the next generation. During this presentation, industry experts will explore the future of equity compensation and discuss how these new tools can make us all more effective and productive. During this session, you will gain tangible examples of tools and technologies that you can apply to your job immediately. Panelists: Kimberly Kovacs - OptionEase, and Karen Needham, CEP - Independent Stock Plan Advisors, LLC

General Session:  GPS| Global Equity Administration

In today’s increasingly global workforce, companies can no longer do without a systematic approach to global compliance for stock plans.  The challenge begins with understanding the conceptual issues of global administration, and then developing an action plan for prioritization and compliance.  The CEPI’s third installment in the GPS research series, GPS|Global Stock Plans will serve as a user’s manual for companies to systematically review and enhance global compliance.  This “world premier” of the final publication will offer attendees a glimpse into the complex world of global stock plans and provide a roadmap for companies to evaluate, document, and maintain global processes effectively.  At this session all attendees will receive a copy of the publication.  Panelists: Valerie Diamond, Baker & McKenzie LLP and Carol Rutlen, Rutlen Associates, LLC

Breakout Session III

The financial reporting aspects of equity compensation plans and the importance of ensuring that data is managed and interpreted correctly to ensure proper compliance with general accounting practices and FAS123(R) is a mission critical assignment. Crucial components include managing data entered into the stock administration database to ensure data integrity and reliability (SOX and Internal Controls), ESPP record-keeping for financial reporting, identifying and accounting for grant modifications, and the management of vesting schedules, templates and parameters to ensure proper attribution of grants. Additionally, panelists will address understanding and using the different attribution methods (ratable vs. straight-line), leaves of absence best practices and financial reporting impact, and resources for financial reporting (pros & cons of outsourcing, in-house stock administration software, and spreadsheets). The panel will wrap up with an IFRS overview and highlight how it will affect financial reporting. Panelists: Arnold Freilich, CEP - Financial Intelligence, Elizabeth Harder - Financial Intelligence and Dorica Fitzwater, CEP - Equity Compensation Consultant.
ESPPs may be experiencing a resurgence in popularity, as companies struggle to find the right mix of equity compensation, yet the many different design features are complex to administer, requiring mastery of many different tasks, flexibility, partnership with other company departments, and strict adherence to a timeline! This panel will share recent CEPI/NCEO survey data on ESPP design trends and plan satisfaction. Sharing their real-world experience with different flavors of ESPP in a variety of corporate environments, three seasoned professionals will provide attendees with concrete examples of best practices and practices best to avoid with respect to adopting, managing, and improving ESPPs. From initial adoption and rollout of a plan to employee enrollment, purchase preparation, and delivery of shares to brokerage accounts, the panel will offer plenty of do's and do not's! This session is a must for anyone who is involved in administering an ESPP. With ideas and information from this session, attendees will be able to improve the effectiveness and efficiency of their own company's ESPP policies and administration process and procedures. Panelists: Stephen Buckhout, CEP - Synopsis, Joanne Norgart, CEP, Jean Wong, CEP - Sun Microsystems and Pam Chernoff, CEP – NCEO

  • Ringing in the New Year: Global Grant Policies and Documentation for 2010!
The 2009 will end soon; Why not start fresh in 2010 with international equity compliance?  This panel will provide you a number of best practices to move your company towards compliance in the coming year.  The panelists will begin with a brief discussion of the key international tax and regulatory changes of 2009 for employee stock plans.  They will then discuss how these changes affect a company's global grant policies or procedures, if any, and whether these changes will result in a need for new or modified grant documentation.  The panelists will then address how best to keep abreast of future international tax and legal changes and when and how to update grant policies and documentation in the future.  The speakers will provide small but effective steps that may be taken by a company to enhance its international legal compliance on equity awards.  Both the legal requirements and the administrative considerations will be addressed. Panelists: Jennifer F. Kirk - Baker McKenzie LLP, Carrie Kovak, CEP - Symantec, and Darrin Short, CEP – Equinix

Evaluation Form

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