« Retention v. Engagement: Stay or Play? | Main | You Made a Mistake? Great Work! »

02/01/2012

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83451df4569e20168e6777a25970c

Listed below are links to weblogs that reference Where in the World is Carmen San Diego’s Equity Compensation?:

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Hi Dan --- thanks. Somehow I knew would pick this route. It makes the most sense but it is the toughest one to design and communicate. Plus top management always wsnts "easy".

Just to add something ---- in some European countries it is not even worth having a stock option plan because of the high taxes. You don't get a bang for it ---- just barely a whimper.

Thanks Jacque

Having been down this route with clients numerous times, the best path chose itself. While the more complex and granular solution seems more difficult, in fact it is easier over the long run.

It's easier because it works.

I do agree on your comment regarding some European countries. Equity CAN work anywhere, but often it is not the BEST solution for everywhere.

you can add to your list the issue of different tax treatments on awards by location

Thanks Howard,

You are absolutely correct. Income and tax issues are some of the most complex and most important issues to address in global equity compensation.

Properly crafting awards to take advantage of local income and tax rules (or avoiding the onerous ones) can make global equity compensation more desirable and understandable to participants. It can also provide the additional benefit of the company possibly using less shares to deliver more value.

The comments to this entry are closed.