NORTH AMERICA CHAPTER

Employee Stock Ownership Plans and other forms of equity compensation have become essential tools for attracting, retaining, and aligning top talent. Once limited to senior executives, these programs are now widely used across job levels and geographies, reflecting a broader shift toward long-term incentives and ownership driven culture.

But for all the attention paid to plan design, grant size, and vesting schedules, a critical part of the employee experience often goes unnoticed: dividend income, and more specifically, how much of it is silently lost to Dividend Withholding Tax (DWT).

In this whitepaper, you’ll explore:
• What DWT is and why it’s often overlooked in ESOP administration
• How recovery works and what’s legally reclaimable
• The strategic upside of integrating DWT recovery into your total rewards model
• Practical implementation options that minimize administrative burden
• A powerful DWT reclaim impact study, demonstrating the scale of opportunity
 

CONTRIBUTED BY SPRINTAX DIVIDENDS

Online Content Disclaimer

Mineralys Therapeutics (Nasdaq: MLYS) announced that it granted inducement equity awards on February 9, 2026, to two new non-executive employees under its 2025 Employment Inducement Incentive Award Plan in accordance with Nasdaq Listing Rule 5635(c)(4). The awards consist of stock options covering 33,504 shares and 25,128 restricted stock units (RSUs). The stock options vest over four years with 25% vesting after one year and monthly installments thereafter, while the RSUs vest in equal 25% installments on each of the first four anniversaries of the vesting commencement date.

Employee Stock Ownership Plans (ESOPs) have evolved from niche incentives to strategic tools that align employee success with company growth, helping startups and scaleups attract talent, retain key personnel, and maintain a strong ownership culture. ESOPs are most effective in fast-growing, pre-profit companies with a focus on retention and fostering an “owner-minded” workforce, and they require careful design, including choice of plan type, pool size, vesting schedules, and legal structure. Beyond administration, successful ESOPs depend on clear communication and transparency, allowing employees to see the value of their equity and feel personally invested in the company’s long-term success.

Chair Atkins emphasized that capital formation is essential for U.S. economic growth, turning ideas into businesses and businesses into sources of employment and social mobility, while noting a significant decline in public company listings over recent decades. She outlined three pillars to strengthen markets: focusing disclosures on material information, de-politicizing shareholder meetings, and providing litigation alternatives to protect innovators and investors. Chair Atkins welcomed the INVEST Act and the Empowering Main Street in America Act, highlighting provisions like “test-the-waters” IPOs, modernized accredited investor definitions, and expanded retirement account investment options as tools to encourage public offerings and broaden American participation in capital markets.

The webinar explains how first-quarter bonuses and equity vesting can lead to larger than expected tax bills because standard withholding may not be sufficient. It covers key planning tools for executives, such as safe harbor election rules, making estimated tax payments, and how different types of equity compensation (like RSUs, ISOs, and NSOs) affect tax obligations. The presenter also highlights time-sensitive actions that can help reduce underpayment penalties and better align your withholding with your actual tax liability.

Broad-based employee ownership programs (BBOPs) significantly improve engagement, retention, and business performance, but financial stakes alone are not enough; success relies on three key management practices: financial transparency, empathic leadership, and rigorous measurement of culture and people metrics. By giving employees clear insight into how their daily actions affect business outcomes, fostering psychological safety, and using data to guide people-focused decisions, companies can create a true ownership mindset that drives both individual and organizational success. Even without equity, similar results can be achieved by applying these practices to other forms of shared rewards, such as bonuses, profit-sharing, or career development opportunities.