Presentation to EOA Conference 10 May 2012

Presentation to EOA Conference10 May 2012

Global Equity Plan administration – best practise, common mistakes and current trends

2

The Regulatory Landscape

3

Number of Plans in Operation

4

Participant Numbers By Country

5

Percentage of the Labour Force that Participate

6

UK Participation Numbers Per Plan

7

UK Trends in Plan Types

8

US Current Trends

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

IncentiveStock Options

Non-qualifyingOptions

StockAppreciation

Rights

RestrictedStock

RestrictedStock Units

9

US Option Plans Changes

Type of Change Percentage of Companies

Reduce the number of employees receiving options 48%

Reduce the total number of options granted 44%

Replace some/all options with restricted stock 33%

Replace some/all options with performance based stock 19%

Replace some/all options with long term cash incentives 13%

Replace some/all options with stock appreciation rights 5%

Replace some/all options with shares 1%

Other change 8%

10

US ESPP Trends

0%

10%

20%

30%

40%

50%

60%

70%

80%

3% or lesscontributed

3 - 5 % 5 - 8% Over 8%

Employee

Manager

Executive

11

ESPP Trends

Type of Change Percentage of Companies

Eliminate the “look-back” feature 26%

Reduce the discount on stock purchase 24%

Eliminate the plan entirely 17%

Other 7%

12

Australian Global Plans – Countries Participating in the Plan

47

48

49

50

51

52

53

54

55

56

2006 2007 2008 2009 2010 2011

13

Australia – The Number of Plans that Companies Operate

12

34+

2009

2010

2011

0%

10%

20%

30%

40%

50%

60%

2009

2010

2011

14

Employee Plan Types Used in Australia

TE FreeTE SalarySacrifice TD Salary

Sacrifice Other

2009

2010

2011

0%

10%

20%

30%

40%

50%

60%

70%

2009

2010

2011

15

Executive Plan Types - Australia

RightsOptions

SharesOther

2009

2010

2011

0%

10%

20%

30%

40%

50%

60%

16

How to Make Your Plan Successful

Determination about global/local focus

Decision about whether shares are important

Translation – is this required

Plan champions

Communication and engagement channels

17

Common Mistakes

Eligibility data

Withholding tax and detailing with it immediately

Management of forfeited shares

Terminations

Taxation – understanding your employees, international assignees

Discussion