GEO INSIGHTS

In March, 9,200 Marks and Spencer staff received significant payouts from a sharesave plan, with some employees earning over £10,000 from a £150 monthly investment. Share schemes, such as share incentive plans and company share option plans, help attract and retain employees by giving them a stake in the business and fostering loyalty. Effective communication of these schemes is crucial for employee engagement, with clear, simple explanations and varied methods like videos and mobile apps proving most effective.

The Indian government has clarified that Employee Stock Options (ESOPs) and Restricted Stock Units (RSUs) are exempt from GST, as they are part of employee compensation rather than a taxable service. The Circular confirms that Indian subsidiaries' reimbursement to foreign companies for stock options is not subject to GST, as it is not considered a purchase of goods or services. However, if there are additional administrative fees charged by the foreign company, these fees would be taxable, and GST would apply.

Canva has provisions in employee contracts that allow the company to reclaim share rights from employees who publicly criticize the company, even after leaving, similar to a now-reversed policy at OpenAI. The contracts include non-disparagement clauses, non-compete agreements, and restrictions on using confidential information post-employment, aimed at protecting the company's interests. Critics, like entrepreneur Lucy Wark, argue these provisions can be used to silence former employees and prevent them from discussing major issues, though Canva claims the measures are intended to ensure employees share in the company's success.

The Global Equity Organization's (GEO) 26th Annual Conference in Prague from 28-30 April 2025 presents an exceptional opportunity for professionals in global equity compensation to advance their knowledge, network with peers worldwide, and witness industry excellence firsthand.

Next year, the event promises to be a transformative experience in the picturesque city of Prague, offering numerous benefits that make it a crucial investment for anyone involved in global equity compensation.

Valuable educational opportunities

One of the standout features of GEO's conference is the ability to earn up to ten continuing education credits. By attending, you stay current with evolving practices and gain insights into future trends that can influence your organization's global equity strategies. Join the 92% of attendees whose learning objectives were met last year, ensuring your time is well spent and highly productive.

Financial incentives

Early birds catch the worm, and in this case, early registrants catch significant savings. GEO offers substantial discounts for those who register ahead of time, making it financially prudent to plan early. Moreover, issuers of global equity compensation plans that secure a speaking slot can attend for free, presenting an unbeatable opportunity for key decision-makers to gain invaluable knowledge and network with peers from around the world.

Robust program: Education and networking

The conference program is meticulously crafted to offer diverse learning opportunities. With over 50 education sessions covering topics from regulatory updates to innovative equity plan design, attendees can tailor their experience to meet their professional development goals.

Networking at GEO's conference is about more than exchanging business cards; it's about forging lasting connections in a conducive environment. Imagine having access to 10 structured networking events designed to facilitate meaningful interactions. These events ensure attendees meet peers from over 20 countries, creating a global network of contacts that can prove invaluable long after the conference concludes. Join the 88% of attendees who felt engaged throughout the event, ensuring a productive and enjoyable experience.

GEO Awards: Celebrating excellence

As an added bonus, attendees will have the opportunity to witness the prestigious GEO Awards ceremony. Each attendee seat at this exclusive event is valued at $350, providing a chance to celebrate and honor excellence and innovation in the field of global equity compensation. This ceremony not only recognizes outstanding achievements but also inspires attendees with new ideas and best practices.

MAKING THE CASE FOR APPROVAL

Convincing your organization to approve travel and registration costs for GEO's 26th Annual Conference in Prague boils down to highlighting the tangible benefits:

• Professional Development: Gain essential knowledge and certifications through accredited sessions.
• Financial Efficiency: Take advantage of early registration discounts and free attendance for issuers.
• Networking Opportunities: Foster global connections at structured events designed for meaningful interactions.
• Industry Recognition: Experience the prestige of the GEO Awards, celebrating excellence in global equity compensation.

Attending GEO's conference isn't just an expense; it's an investment in both personal and organizational growth. The knowledge gained, connections made, and strategies learned can directly impact your company's success in navigating the complex landscape of global equity compensation.

By demonstrating how your attendance will contribute to your professional development and benefit the organization through enhanced knowledge, networking, and exposure to industry excellence at the GEO Awards, you can effectively make the case for approval.

Investing in your professional growth at GEO's 26th Annual Conference is a decision that promises substantial returns, both in the short term and throughout your career.

The proposed changes in Budget 2024 regarding stock options in Canada will come into effect on June 25, 2024. These changes reduce the stock option deduction and capital gains tax exemption from 1/2 to 1/3 of the taxable amount, if the individual's annual limit of CAD 250,000 is exceeded. Employers face uncertainty in managing tax withholding on stock option income, as they may not know if the employee has exceeded the limit or how exemptions are allocated. Additional legislative clarifications are expected by July 2024, prompting employers to currently consider withholding taxes based on the reduced exemption rate of 1/3.

Thousands of Royal Mail employees are being asked to sell their shares to Czech billionaire Daniel Kretinsky, who seeks to buy Royal Mail's parent company, International Distribution Services (IDS). Kretinsky's investment group, which already owns 27.5% of IDS, needs the approval of shareholders representing three-quarters of the company, with major asset managers holding most of the remaining shares. The board of IDS has recommended accepting Kretinsky's offer of 370p per share, though the government could block the deal due to Royal Mail's national importance, and there are assurances to maintain Royal Mail's UK headquarters and employment agreements.

A recent survey found that 60% of companies globally apply ESG targets to share-based employee compensation, with CO2 reduction, diversity, and corporate governance being the most common areas. Among those using ESG targets, 84% apply them to management board incentives, while 40% use them for short-term incentives and 30% for long-term incentives. The survey also indicated that institutional investors and proxy advisors significantly influence these targets, and a growing number of companies are focusing on ESG issues as part of their employee compensation strategies.

On June 21, 2024, Howden announced that 656 employees have invested in the company through its 2024 Internal Share Offer (ISO), increasing the total number of employee shareholders to about 5,200 across 48 countries. Howden, the second largest employee-owned business by turnover in the UK, attributes its sustained growth and success to its employee ownership model, which also benefits its charitable Foundation. The company’s model is highlighted by recent research showing higher productivity and profitability in employee-owned businesses, and Howden is actively supporting the employee ownership sector by sponsoring the UK Employee Ownership Awards 2024.

A phantom stock plan is an employee benefit that provides the financial benefits of stock ownership without actual stock, tracking the company's stock price and paying out any resulting profits. These plans can be structured as appreciation-only, which pays out based on stock price increases, or full-value, which includes the value of the stock and any appreciation. Although phantom stock plans offer flexibility and align employee incentives with company performance, they do not provide actual ownership or voting rights and are taxed as ordinary income, requiring careful legal and tax compliance.