Headlines about "Stock plans - employee stock purchase (423)"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Employee Stock Purchase Plans: IRS Update to Rules and Reporting Requirements (PDF)
4 pages. Excerpt: "In July, the Internal Revenue Service proposed regulations that would provide a comprehensive set of rules governing stock options issued under employee stock purchase plans. Earlier in the month, IRS issued proposed regulations relating to ESPP and incentive stock option (ISO) information reporting requirements. In the [target] article, the authors summarize key changes in both regulatory proposals. [Reproduced with permission from Pension & Benefits Reporter.]" (The Bureau of National Affairs, Inc. via Groom Law Group)
Employee Ownership Update for August 29, 2008
NCEO Executive Director Corey Rosen discusses a study of 328 majority ESOP-owned companies finding that they have sales per employee that are 8.8% greater than comparable non-ESOP companies; a new NCEO issue brief on the state of broad-based employee equity plans; a new IRS analysis finding that the top 47,000 families in the U.S. own $1.196 trillion in public and private corporate equity; and a correction to a prior story on Appleton, Inc. (National Center for Employee Ownership)
NCEO Issues Issue Brief on the Future of Broad-Based Equity Plans
The NCEO presents excerpts from its revised Issue Brief on the Future of Broad-Based Equity Plans, written by NCEO Executive Director Corey Rosen. The issue brief looks at how the markets will react to stock option expensing, how expensing and greater concern about dilution are affecting broad-based equity plans, and the impact of broad-based plans on corporate performance. (National Center for Employee Ownership)
[Official Guidance] Correction to IRS Proposed Regs on Information Reporting of Statuory Stock Options per Code Section 6039 (PDF)
1 page; seems to be insignificant grammar corrections only although one correction eliminates a potentially confusing incorrect statutory reference. (Internal Revenue Service)
[Guidance Overview] IRS Proposes Updated Regulations for Stock Purchase Plans
Excerpt: "The regulations are proposed to apply as of January 1, 2010, and will apply to any option issued under an employee stock purchase plan that is granted on or after that date. However, taxpayers may rely on the proposed regulations for the treatment of any option issued under a plan that is granted after July 29, 2008." (Deloitte)
[Opinion] Follow-up to the 'Beware of Beneficiary Provisions' Blog
Excerpt: "In [Ed Burmeister's blog, he] channels Andy Rooney, pointing out all that is wrong and risky about beneficiary designation provisions in stock incentive plans and ESPPs. Speaking as only someone who has been through these headaches a few times can, Ed's article points out [a] few of the pitfalls in allowing employees too much latitude in the designation of beneficiaries, given the variety of state and foreign laws, and argues compellingly for simplicity." (Michael S. Melbinger via Winston & Strawn LLP)
[Guidance Overview] Proposed Regs Provide Guidance on Options Granted Under Employee Stock Purchase Plans
Excerpt: "The IRS has issued proposed regulations, amending existing regulations under Code Sec. 423, which affect those who participate in the transfer of stock pursuant to the exercise of options granted under an employee stock purchase plan. Such options, under Code Sec. 423, and incentive stock options, under Code Sec. 422, are collectively called statutory options." (Wolters Kluwer)
[Guidance Overview] New Proposed Regulation for Employee Stock Purchase Plans Under Code Sec. 423
Excerpt: "It is hard to get too excited about these proposed regulations since (i) the existing final regulations on Sec. 423 were last updated in 2004, and (ii) their effective date, upon publication as final regulations in the Federal Register, will be January 1, 2010. However, the proposed regs do provide helpful guidance in a few areas, including three of the areas where we see the most confusion among companies . . . ." (Michael S. Melbinger via Winston & Strawn LLP)
[Guidance Overview] IRS's Proposed Regulations for Employee Stock Purchase Plans
Excerpt: "Employee stock purchase plans (ESPPs) were added to the Internal Revenue Code by the Revenue Act of 1964. Since then, precious little official guidance has been available on these plans. . . . In this article, we'll give some very basic background on ESPPs and discuss some of the key points raised in the proposed regulations." (JPMorgan Chase & Co.)
[Guidance Overview] IRS's Proposed Reporting Requirements for Incentive Stock Options
Excerpt: "Prior to the law change, an employer's primary reporting responsibility was to the employee. Now, similar information will be required to be provided to the IRS to ensure taxpayer compliance with the associated ordinary income tax and capital gains requirements. In this article, we review the implications of these proposed requirements." (JPMorgan Chase & Co.)
[Opinion] Beware of Beneficiary Provisions in Equity Plans
Excerpt: "This article was recently posted on CorporateCounsel.net and on the NASPP website. In this posting, Ed Burmeister speaks candidly about equity plans and beneficiary provisions." (Baker & McKenzie LLP)
[Guidance Overview] IRS Issues Proposed Regulations on IRC Sec. 423 Employee Stock Purchase Plans
Excerpt: "The proposed regulations would provide a comprehensive set of rules governing stock options issued under an employee stock purchase plan and would incorporate substantially all of the rules contained in the existing regulations under Sec. 423." (Wolters Kluwer)
[Guidance Overview] Proposed Regulations for Employee Stock Purchase Plans
Excerpt: "As stated in the notice that sets forth the new rule, which was published in the Federal Register on July 29, the IRS's objective in issuing the proposed regulations was to provide a comprehensive set of rules governing section 423 options. Toward that end, the proposed regulations amend the existing section 423 regulations in three main respects. They update the regulations for statutory changes and conform them, where appropriate, to the section 422 regulations governing ISOs. They also clarify the requirements for employee stock purchase plans, and they remove obsolete rules." (Faegre & Benson LLP)
Employee Ownership Update for July 31, 2008
NCEO Executive Director Corey Rosen discusses a PLR allowing floor price agreements for S corporation ESOPs; proposed ESPP and incentive stock option regulations; a new FASB staff position on dividends or dividend equivalents in share plans; an NCEO partnership with the Initiative for a Competitive Inner City; and the Ownership Thinking Conference. (National Center for Employee Ownership)
[Guidance Overview] IRS Proposed Increased Disclosure Requirements for Stock Option Transfers
Excerpt: "Employers would be required, under proposed regulations, to provide greater information to the IRS and employees when a transfer of stock is made in connection with the exercise of an option through an employee stock purchase plan or through an incentive stock option program." (Wolters Kluwer)
[Official Guidance] Proposed IRS Regs: Transfer of Stock Acquired Through Options Granted Under Section 423 Employee Stock Purchase Plans (PDF)
16 pages. Excerpt: "These proposed regulations would provide a comprehensive set of rules governing stock options issued under an employee stock purchase plan and would incorporate substantially all of the rules contained in the existing regulations . . . These proposed regulations would . . . update the existing regulations to provide additional guidance in certain areas [and] update the existing regulations to remove obsolete rules." (Internal Revenue Service)
[Guidance Overview] American Benefits Council Summary of IRS Proposed Regs on Options Granted under an ESPP (PDF)
3 pages. Excerpt: "On July 28, the Internal Revenue Service and the U.S. Treasury Department released proposed regulations relating to options granted under an employee stock purchase plan (ESPP) as defined in Section 423 of the Internal Revenue Code (Code). The regulations provide guidance on complying with Section 423 and also amend regulations under Code Sections 421 and 422." (American Benefits Council)
[Official Guidance] Text of Prop. IRS Regs on Required Returns and Employee Statements for ESOPs, Incentive Stock Options and Sec. 423 Employee Stock Purchase Plans (PDF)
5 pages. Excerpt: "This document contains proposed regulations relating to the return and information statement requirements under section 6039 . . . [which] reflect changes [made by] the Tax Relief and Health Care Act of 2006. These proposed regulations affect corporations that issue statutory stock options . . . [under sections 422 or 423]. As amended by the Act, section 6039 requires corporations to file an information return with the IRS, in addition to providing employees with an information statement, following a stock transfer. The time and manner for filing a return with the IRS, as well as the information to be contained in the return and furnished to employees, is addressed in these proposed regulations. Section 6039, as amended by the Act, applies to stock transfers occurring on or after January 1, 2007." (Internal Revenue Service)
New edition of Model Equity Compensation Plans
The NCEO presents excerpts from the new edition of its book Model Equity Compensation Plans, which provides model stock option and employee stock purchase plan (ESPP) documents, plus brief explanations of the plan documents. (National Center for Employee Ownership)
Employee Ownership Update for July 1, 2008
NCEO Executive Director Corey Rosen discusses the agreement by the State of Florida to buy U.S. Sugar, an ESOP company recently in the news due to employee complaints that they were cashed out of the ESOP at too low a price; the State of California's offer of a settlement in certain abusive ESOP transactions; and a survey showing that employee stock purchase plans (ESPPs) have become somewhat more conservative in response to accounting rule changes that became fully effective in 2006. (National Center for Employee Ownership)
New Jersey High Court Approves Forfeiture of Executive Incentive
Excerpt: "New Jersey's Supreme Court gave its stamp of approval to employee stock-purchase compensation plans that carry forfeiture provisions if participants quit before fully vesting." (PLANSPONSOR.com; free registration required)
Updated Employee Ownership 100 List
The National Center for Employee Ownership presents the latest version of the Employee Ownership 100 list, which lists the largest U.S. companies that have at least 50% of their stock owned by an ESOP, a stock purchase plan in which most full-time employees can participate, a profit sharing plan or other trust, or some combination of such plans. (National Center for Employee Ownership)
When the Company Share Price Is a Factor in Compensation
Excerpt: "[47] percent of private sector employees in the United States have had at least part of their compensation tied to their company's profitability or stock price. That's right. If you include stock options, deferred stock, profit sharing or cash bonuses pegged to a company's performance, nearly half of the 114 million employees of private-sector companies had some stock or profit-related pay at the end of 2006." (The New York Times; free registration required)
Executive Compensation - Besides Stock Options, What Else Is There?
Excerpt: "There are several alternatives, including restricted stock plans, phantom stock, stock appreciation rights, and employee stock ownership plans. Each of these plans is an alternative to the stock option, and some do not involve stock ownership at all." (Wisconsin Technology Network, LLC)
[Guidance Overview] Summary of FASB Statement 123R Share-Based Payment - Revised 3/10/2008 (PDF)
14 pages. Excerpt: "Statement 123R creates a more 'level playing field' for equity incentive design that is expected to result in the increased prevalence of full-value and performance-vesting awards, and a corresponding decline in plain-vanilla, tax qualified, and reload stock options, and employee stock purchase plans. The remainder of this paper summarizes the most pertinent provisions of Statement 123R and related staff guidance provided by the FASB and the Securities and Exchange Commission (SEC)." (Frederic W. Cook & Co., Inc.)
New edition of The Stock Options Book
The NCEO presents excerpts from the new edition of The Stock Options Book, a comprehensive guide to employee stock options. The book also covers employee stock purchase plans (ESPPs). It is a required text in the Certified Equity Professional (CEP) program. (National Center for Employee Ownership)
New edition of Selected Issues in Equity Compensation
The NCEO presents excerpts from the new edition of Selected Issues in Equity Compensation, which provides in-depth coverage of topics like administrative issues, securities laws, etc., as they relate to equity compensation plans such as employee stock options and employee stock purchase plans (ESPPs). It is a required text in the Certified Equity Professional (CEP) program. (National Center for Employee Ownership)
New edition of Accounting for Equity Compensation
The NCEO presents excerpts from the new edition of Accounting for Equity Compensation, which provides detailed coverage of how to account for stock options, ESPPs, and other equity instruments under SFAS 123(R). It is a required text in the Certified Equity Professional (CEP) program. (National Center for Employee Ownership)
Employee Ownership Update for January 15, 2008
NCEO Executive Director Corey Rosen discusses new guidance on incentive stock option and employee stock purchase plan reporting; proposed French legislation to democratize stock options; developments in stock drop cases in ESOPs and 401(k) plans; the William McGuire case; and submissions for the Innovations Award. (National Center for Employee Ownership)
Reminder: January 31 Deadline for Information Statements for Incentive Stock Options and ESPPs (PDF)
3 pages. Excerpt: "Section 6039 of the Internal Revenue Code requires that corporations provide a written statement to each current and former employee who receives stock pursuant to the exercise of an incentive stock option or who transfers for the first time stock received under an employee stock purchase plan (ESPP). The statement must be provided by January 31 of the year following the calendar year in which the stock transfer was made. The Tax Relief and Health Care Act of 2006 amended section 6039 to further require corporations to file an expanded information return with the Internal Revenue Service." (Pillsbury Winthrop Shaw Pittman LLP)
Overview of Section 6039: IRS Interim Guidance on Information Returns to Be Filed with the IRS for ISOs and ESPPs
Excerpt: "The time and manner in which to file the information return to the IRS is to be set forth in regulations. However, the IRS has yet to issue regulations addressing this particular requirement. As a result, the IRS has temporarily waived the obligation to file an information return to the IRS for stock transfers covered under Section 6039. There is still, however, the existing requirement to furnish employees with a written statement containing certain specific information as provided in the current regulations." (Wilson Sonsini Goodrich & Rosati)
Summary of FASB Statement 123R on Share-Based Payment, Revised December 18, 2007 (PDF)
Excerpt: "Statement 123R creates a more 'level playing field' for equity incentive design that is expected to result in the increased prevalence of full-value and performance-vesting awards, and a corresponding decline in plain-vanilla, tax qualified, and reload stock options, and employee stock purchase plans. The remainder of this paper summarizes the most pertinent provisions of Statement 123R and related staff guidance provided by the FASB and the Securities and Exchange Commission (SEC)." (Frederic R. Cook)
IRS Notice 2008-8: Waiver of Requirement to Make 2007 Information Return for Certain Stock Transfers Under Code Sec. 6039 (PDF)
3 pages. Excerpt: "Section 403 of the Tax Relief and Health Care Act of 2006 (Act) amended the information reporting requirements of § 6039. . . . As amended by the Act, § 6039 requires corporations to make an information return with the IRS, in addition to providing employees with an information statement, following a [transfer of stock pursuant to the employee's exercise of an incentive stock option or a transfer of stock by the employee where the stock was acquired pursuant to the exercise of an option described § 423(c)]. . . . Because regulations under § 6039 have not yet been issued, the IRS is waiving the obligation to make an information return for 2007 stock transfers . . . ." (Internal Revenue Service)
Overview: New Incentive Stock Option and Employee Stock Purchase Plan Filing Requirements (PDF)
3 pages. Excerpt: "Under new filing requirements, employers are required to furnish information returns to the Internal Revenue Service (IRS) regarding the exercise of incentive stock options (ISOs) and the transfer of shares acquired under an Employee Stock Purchase Plan (ESPP) that occur on or after January 1, 2007. The IRS has not yet provided guidance as to the exact information required, the format in which the required information is to be provided, or the due date of the information returns. Unless the IRS decides to postpone the effective date, we anticipate that the deadline for filing the returns will be February 28, 2008." (Morgan, Lewis & Bockius LLP)
Five Key Errors in Designing Equity Compensation Plans in Closely Held Companies
NCEO Executive Director Corey Rosen discusses the errors commonly made in closely held companies when deciding on an equity compensation program. (National Center for Employee Ownership)
New book: The Decision-Maker's Guide to Equity Compensation
The NCEO presents excerpts from its new book, The Decision-Maker's Guide to Equity Compensation. This book describes the full spectrum of equity compensation plans available to private and public companies. Unlike most books on equity compensation, it focuses on helping decision-makers decide what kinds of equity to choose, and who should get how much and when. The book also includes a CD-ROM with an audiovisual presentation by coauthor Corey Rosen on sharing equity with employees. (National Center for Employee Ownership)
Key Differences in U.S. and UK Stock Purchase Agreements (PDF)
3 pages. Excerpt: "Although market practice in the UK and US in respect of share/stock purchase agreements is becoming more closely aligned, there are still some important M&A distinctions of which lawyers working on transatlantic transactions, and their clients, should be aware." (Paul, Hastings, Janofsky & Walker LLP)
New edition of Equity-Based Compensation for Multinational Corporations
The NCEO presents excerpts from the newly released 9th edition of its book Equity-Based Compensation for Multinational Corporations, which covers designing, implementing, and communicating stock-based programs across the globe. (National Center for Employee Ownership)
2006 International Stock Plan Design and Administration Survey (PDF)
56 pages. Excerpt: "The survey consisted of questions addressing eight areas: General Information; International Plans; Stock Option Plans; Employee Stock Purchase Plans; Performance Plans; Other Stock Grants/Awards; Utilization, Allocation, and Source of Plan Shares; and, Country-Specific practices covering the EU and nine countries." (The National Association of Stock Plan Professionals and Deloitte Tax LLP)
Overview: California Amends Regulations on Compensatory Stock Plans (PDF)
3 pages. Excerpt: "Effective July 9, 2007, the California Corporations Commissioner adopted amendments to the compensatory plan regulations under the California Corporate Securities Law of 1968. The amended rules eliminate many restrictive requirements, such as minimum vesting and pricing, to provide greater flexibility to companies in drafting compensatory benefit plans such as stock option or stock purchase plans." (Pillsbury Winthrop Shaw Pittman LLP)
Updated Statistical Profile of Employee Ownership
The NCEO has released its updated Statistical Profile of Employee Ownership, which details the growth and extent of ESOPs, employee stock options, 401(k) plans primarily invested in company stock, and stock purchase plans. (National Center for Employee Ownership)
BenefitsLink Named 'Best of the Web' by Human Resource Executive Online
We're the only site in the 'Benefits' category! Thanks for letting us share this news with you. Excerpt: "With that in mind, we considered it fitting to present in this anniversary issue 10 of the best HR Web sites and 10 of the best HR blogs for your browser's Favorites/Bookmarks list. . . . [I]f it's about benefits, you'll find something about it on BenefitsLink. Just a cruise down its left side navigation/links bar, and you quickly get the idea how they chose the site's name back in 1995." (Human Resource Executive Online; free registration required)
New edition of Model Equity Compensation Plans book
The NCEO presents excerpts from the new edition of Model Equity Compensation Plans. Authored by attorney David R. Johanson, the book presents a complete set of model plan documents for incentive stock options (ISOs), nonqualified stock options (NSOs), and an employee stock purchase plan (ESPP). A CD is included with the plan documents in word-processing format. (National Center for Employee Ownership)
Overview: Reporting Requirements for Incentive Stock Options and Employee Stock Purchase Plans (PDF)
2 pages. Excerpt: "The Tax Relief and Health Care Act of 2006 that was signed into law late last year made a change in the reporting requirements for stock transferred pursuant to an incentive stock option ('ISO') or under an employee stock purchase plan ('ESPP')." (Powell Goldstein LLP)
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