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Transcript of Serious about Success ® Communicating Employee Share Plans Workshop – EOG Conference Charlie...
![Page 1: Serious about Success ® Communicating Employee Share Plans Workshop – EOG Conference Charlie Viola, Partner Moore Stephens Sydney.](https://reader036.fdocuments.net/reader036/viewer/2022062321/56649f325503460f94c4e5c5/html5/thumbnails/1.jpg)
Serious about Success®
Communicating Employee Share Plans
Workshop – EOG Conference
www.moorestephens.com.au
Charlie Viola, PartnerMoore Stephens SydneyMay, 2012
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Getting the best out of your plan
4 Key messages from the workshop
1. Your Employee’s will not see value in the share plan unless they understand it;
2. Unless employees see value in the plan, it wont have the desired effect (retention, reward, alignment etc);
3. Communication is the key to getting the most out of your plan
4. Communication must be in a way that employees can understand and relate it to their own situation
![Page 3: Serious about Success ® Communicating Employee Share Plans Workshop – EOG Conference Charlie Viola, Partner Moore Stephens Sydney.](https://reader036.fdocuments.net/reader036/viewer/2022062321/56649f325503460f94c4e5c5/html5/thumbnails/3.jpg)
Agenda
Effective Communication of Employee Share Plans
• Share Based Remuneration – Objectives and Failings
• What needs to be communicated
• How do you best communicate the plan to your people
• Outcomes of effective communication
• Our Services
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Objectives
Key objectives of any share plan should be:
• Align the interests of employees with the group/ company;
• Align the interests of employees with shareholders;
• Provide a sense of engagement and ownership;
• Act as a retention and attraction tool.
![Page 5: Serious about Success ® Communicating Employee Share Plans Workshop – EOG Conference Charlie Viola, Partner Moore Stephens Sydney.](https://reader036.fdocuments.net/reader036/viewer/2022062321/56649f325503460f94c4e5c5/html5/thumbnails/5.jpg)
Failings
Based on recent studies, the key failings of ESS plans, were be as follows:
•Employee lack of knowledge/ understanding of the plan;
•Employees seeing no value in the plans;
•Investment market linked;
•Employees not understanding vesting and taxation considerations;
•Often ‘unclear’ plan benefits;
•Offer documents are complicated and difficult to read, especially for less financially literate participants.
Many of the failings are based upon employees not understanding the plan……communication is the key
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What Needs to be Communicated?
Key items that will need to be communicated well to obtain maximum benefit:
•Why the plan is in place
•Plan Design
•How securities are allotted
•Performance Hurdles
•Vesting provisions
•Taxation Treatment
•Long Term benefits
•Planning considerations
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Method of Communication
Effective methods of communication:
•Briefing sessions- Delivered in ‘layman’ terms
- Capturing all the key information re allotment, vesting, taxation, use post vesting, planning opportunities etc.
•Information Memorandums- Summary of offer documents
- FAQ’s
•Calculators- Value over time
- Benefit of use
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Method of Communication
Effective methods of communication (cont.):
•Broadcasts from key management personnel
•Registry accessibility
•Survey
•Specific Point of Contact
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Method of Communication examples
‘FAQ’ documents
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Method of Communication examples
‘Tax information’ documents
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Method of Communication examples
Calculators
![Page 12: Serious about Success ® Communicating Employee Share Plans Workshop – EOG Conference Charlie Viola, Partner Moore Stephens Sydney.](https://reader036.fdocuments.net/reader036/viewer/2022062321/56649f325503460f94c4e5c5/html5/thumbnails/12.jpg)
Method of Communication examples
Employee surveys
Employee Needs Assessment
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Method of Communication examples
Participant wide broadcast
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Outcomes of Effective Communication
• Greater Understanding of Plan
• Greater Employee Engagement
• Value in administrative expense
Survey your people…….before and after…….
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MSS Services
• Specific Briefing sessions – covering all the required items
• Information memorandums, including:– ‘Frequently Asked Questions’ document
– ‘One Page’ explaining design and benefit
• Calculators
• Survey’s
• Tax Guides
• Reporting Statements
• Contact Line for participants
• Offer of one-on-one meetings for all participants
• Accounting and Valuation Services
• Plan Design and Construction