NEW YORK CHAPTER

Vox reported that OpenAI pressured departing employees to sign restrictive exit documents by threatening to withhold vested equity, a practice uncommon in Silicon Valley. Despite claims of ignorance by OpenAI leadership, internal documents suggest key executives, including CEO Sam Altman, were aware of these provisions. Following backlash, OpenAI has apologized and committed to changing their policies, including removing nondisparagement clauses and ensuring former employees' equity rights are respected.

Morgan Stanley at Work's fourth annual State of the Workplace Financial Benefits Study reveals a growing demand for equity compensation among employees and HR leaders at both public and private companies. The study highlights that equity compensation is a top driver of employee engagement and retention, with 95% of HR leaders and 80% of employees recognizing its motivational impact. However, awareness and education gaps persist, as only 38% of employees are aware of these benefits, indicating significant opportunities for companies to enhance their equity compensation education programs.

When U.S. stock markets reopen after Memorial Day, they will implement a significant change: reducing the settlement period for securities transactions from two days (T+2) to one day (T+1). This transition, effective May 28, 2024, aims to reduce counterparty risk and increase automation in post-trade processes but will require updates to systems and processes and may introduce new risks. Major financial institutions and stock exchanges are preparing for this change, with concerns about potential foreign exchange (FX) risks for international investors due to the compressed timeframe and time zone differences.

Stablecoin issuer Circle is moving its legal base from Ireland to the United States, as confirmed by recent filings with the High Court of the Republic of Ireland. This move may be linked to Circle’s potential initial public offering (IPO) plans, despite the U.S.'s higher tax rates compared to Ireland. Circle, which confidentially filed for an IPO in January, issues the USDC stablecoin and counts major financial firms like Fidelity and BlackRock among its investors.

In a recent webcast sponsored by InsightSoftware, the recipients of the 2024 Best in Technology GEO Award gathered to explore the crucial role of technology in reshaping share plan management. Representatives from industry leaders Domo, DHL, Amazon, and Boston Scientific shared their perspectives and introduced groundbreaking technological solutions that have transformed share plan administration both internally and externally. 

Addressing unsustainable practices 

Kody Adams from Domo shed light on the necessity for change, identifying existing practices within their share plan management as unsustainable due to their inefficiency and complexity. Manual processes for equity concept simplification and administrative tasks were proving burdensome and error-prone. Recognizing the urgency for innovation, Domo embarked on implementing an approach aimed at simplifying equity concepts for employees and automating repetitive processes. This initiative aimed to streamline operations, minimize errors, and enhance overall efficiency, ensuring a smoother experience for both employees and administrators. 

Navigating executive support 

Kody emphasized the critical importance of securing executive backing for transformative initiatives. While facing initial scepticism from some leaders, particularly regarding data privacy and security concerns, Kody's direct executive championed the initiative. Gaining consensus required extensive discussions and concessions to address concerns, highlighting the importance of aligning visions across leadership tiers. The journey to securing executive support underscored the significance of transparent communication, meticulous planning, and a clear demonstration of the anticipated benefits of the proposed technological advancements. 

Leveraging existing resources 

Despite budgetary constraints, Kody highlighted the significance of maximizing existing resources and fostering creativity in solution development. Domo strategically collaborated with its equity provider and leveraged internal expertise to tailor a solution to its specific needs. By capitalizing on existing tools and expertise, Domo effectively optimized its resources, minimizing additional financial burdens. This collaborative effort not only enabled Domo to overcome challenges but also fostered a culture of innovation and collaboration within the organization, ultimately contributing to the successful implementation of its share plan solution. 

Streamlining processes through technology 

Adam Favreau shared insights into Boston Scientific’s technological journey, emphasizing the importance of harnessing technology to simplify complex processes. Recognizing the need to streamline share plan management processes for enhanced efficiency and accuracy, Boston Scientific established API integrations between SuccessFactors and Morgan Stanley. This automation reduced manual intervention and improved accuracy in share plan management. Favreau highlighted the necessity of building a compelling business case and securing leadership buy-in to drive technological advancements, further emphasizing the pivotal role of technology in optimizing share plan administration processes. 

Embracing AI for future success 

Jenna Knowles from Amazon discussed the future trajectory of share plan management, highlighting the transformative potential of artificial intelligence (AI). Jenna underscored the role of AI-powered modules in automating processes and delivering personalized support to employees, thereby streamlining operations and enhancing the overall employee experience. Amazon's innovative approach to leveraging AI reflects its commitment to staying at the forefront of technological advancements and continuously enhancing its share plan management practices to meet the evolving needs of its workforce. 

Collaboration and innovation 

Throughout the discussion, speakers emphasized the significance of collaboration between organizations and technology providers. Bernd Schmelzer from DHL commended their partners for their instrumental support in implementing innovative solutions. By closely collaborating with providers like BEQOM and Computershare, DHL successfully integrated new technologies, optimizing the efficiency of their share plan administration processes. Bernd’s insights highlighted the invaluable role of collaboration in driving innovation and fostering successful technological implementations within organizations. 

In conclusion, the webcast participants reflected on the evolving landscape of share plan management and expressed optimism about the transformative potential of technology, particularly AI.  

While challenges persist, embracing innovation, leveraging existing resources, and fostering collaboration are pivotal in driving efficiency, accuracy, and employee satisfaction in share plan administration.  

The shared experiences and insights from the award-winning organizations serve as valuable lessons for organizations looking to optimize their share plan management practices and stay ahead in an increasingly digital and dynamic business environment. 

Read more about these winning plans here: BEST USE OF TECHNOLOGY | Global Equity Organization 

WaFd, Inc. has authorized a new share repurchase program to buy back an additional 10 million shares, increasing the total buyback authorization to 11.8 million shares as of March 31, 2024. The company also declared a regular quarterly cash dividend of 26 cents per share, with a current dividend yield of 3.62%, outperforming the industry's average. Additionally, WaFd's acquisition of Luther Burbank Corporation is expected to be 8% accretive to its earnings in fiscal 2025, and the company maintains a strong balance sheet with $5.3 billion in total borrowings and $1.51 billion in cash and cash equivalents.