CEPI Issues Draft Report on Global Stock Plans

CEPI Issues Draft Report on Global Stock Plans

Last week, the Certified Equity Professional Institute (CEPI) at Santa Clara University released a draft version of its 2009 research project – GPS | Global Stock Plans. “GPS” stands for Guidance, Procedures, and Systems. The draft research report is open for public comment until September 30, 2009

The report covers several different areas of global plan design and administration, and includes “Action Items” at the end of each section to emphasize what a company should consider from a global plan perspective. Several charts laying out processes and responsibilities are also included. Also includes a glossary of common equity compensation terms in the Appendix.

Some of the suggestions detailed in the report include:

  • Undertake country-specific due-diligence to understand the cost of a plan before making final design decisions;
  • Any equity plan should incorporate flexibility to accommodate the needs of non-US locations;
  • Determining the local legal and filing requirements for plan awards;
  • Following global plan “best practices” in order to ensure a plan operates and functions better.

You can find a copy of the report at:

www.scu.edu/business/cepi/gps_draft_releases.cfm

For more information about the CEPI, visit its website at:

www.scu.edu/business/cepi/

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New Plans/Amendments Week of 8/31/2009

Looking at the proxy statements that were filed last week (8/31/2009-9/6/2009), here are the new plans and amendments that I found (Company, plan name, (date proxy filed) and [share request as a percent of Common Shares Outstanding as of the record date/disclosed in the proxy or 10-K or latest 10-Q]):

New Equity Compensation Plan Proposals

  • Acies Corp., 2009 Stock Incentive Plan (9/3/2009) [13.5%]
  • Cryoport, Inc., 2009 Stock Incentive Plan (9/1/2009) [25.7%]
  • Commonwealth Biotechnologies Inc., 2009 Stock Incentive Plan (9/1/2009) [12.2%]
  • Conolog Corp., 2009 Stock Incentive Plan (8/31/2009) [43.4%]

New Equity Compensation Plan Amendment Proposals

  • Cell Therapeutics Inc., 2007 Equity Incentive Plan (9/4/2009) [8.3%]
  • API Nanotronics Corp., 2006 Equity Incentive Plan (9/4/2009) [10.2%]
  • Cree Inc., 2004 Long-Term Incentive Compensation Plan (9/4/2009) [3.3%]
  • Briggs & Stratton Corp., Incentive Compensation Plan (amended & restated) (9/3/2009) [13.6%]
  • Joe’s Jeans Inc., 2004 Stock Incentive Plan (8/31/2009) [6.6%]

Conolog Corp.’s proposed plan is not only notable for the significant dilution it represents, but it is quite possibly the shortest equity compensation plan I’ve ever read — all four articles of it.

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Welcome!

Welcome to my Equity Compensation Plan Blog.  This blog is intended to track issues, trends and interesting developments impacting equity compensation plans and plan amendments. If you have any suggestions of things you’d like to see covered, please let Ed know.

Subscribe to the blog by clicking on the “subscribe” button in the upper right hand corner and filling in the requested information.  If you’d like to participate in discussions about equity compensation plan issues, please register (top of the left-hand sidebar).

Best regards,

Ed Hauder

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Launching 9/8/2009!

Thanks for visiting!

Only a few more days until I officially launch this blog.  Until then, feel free to wander around, but keep in mind that things are still “under construction.” Also, please take a look at my presentation on implementing new equity compensation plans and plan amendments (link below):

View more presentations from EHauder.

If you have any suggestions on how this site could be useful to folks interested in equity compensation plans, please let me know.

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Best regards,
Ed Hauder

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