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According to a recent
article in the Wall Street Journal, "companies are
beginning to test other compensation plans as option
expensing gains traction." With over 14 million
recipients, employee stock options are still the most
prevalent form of equity compensation, but a number of
alternatives are being added to the mix which will only
serve to drive the need for enhanced employee education
and professional assistance.
Equity compensation
programs operate differently, but the objective remains
the same: the motivation and retention of key employees.
Here is a brief description from the WSJ of some of the
different forms of equity compensation that corporations
are now considering:
- Stock Options: Give
workers the right to a buy a set number of shares of
company stock at a preset price.
- Restricted Stock: Shares issued to
employees that can be sold only in the future. Workers
receive dividend payments even before the shares are
vested.
- Restricted Stock Units: Similar to
restricted stock, they represent a promise workers
will receive shares at a future date; unlike
restricted stock, restricted stock units often don't
pay dividends until the shares are vested.
- Performance Shares: Shares of stock that
are only paid out if the company or the worker meets
certain performance targets such as an increase in
sales or earnings per share.
- Stock Appreciation Rights: Workers get the
right to any increase in a stock's value between the
time the grant is made and when it is exercised.
A variety of
articles and FAQs on these forms of equity compensation
can be found on myStockOptions.com.
As
additional stock based programs are added to an
employee's compensation they will need professional
assistance to make informed and prudent decisions. To
address this need, Net Worth Strategies has developed a
corporate equity compensation education and planning
program that is delivered through an exclusive network
of Certified Provider Firms. Utilizing a turnkey and
proven system, advisory firms market and deliver a
unique corporate service that benefits everyone
involved:
- Share holders: Realize
a better return on their equity compensation
investment
- Management: Achieves
improved employee productivity and reduced turnover
- Employees: Learn the
true value of their equity compensation and how to get
the most out of it
- Advisors: Grow their
practices by assisting employees with their most
important asset
The
StockOpter® Corporate Services program is
designed to enable companies to maximize the return on
their investment in stock options and other share based
programs by providing personalized education, periodic
analysis and individual planning to ensure that key
employees understand and are motivated by the
wealth-building potential of their equity compensation.
This program is delivered in three phases:
- Personalized Education:
Each participant receives a Personal Analysis along
with an interactive education session to explain
valuation, leverage, risk, taxation, strategies and
considerations for taking action.
- Individual Planning: Participants receive
in-depth strategy development and tax analysis from
experienced equity compensation planning specialists.
- Periodic Updates: Participants receive a
periodically updated Personal Analysis and other
information regarding equity compensation.
Certified Providers
of StockOpter© Corporate Services build new relationships
with corporations and individuals that will generate
ongoing education, planning and product revenue. Net
Worth Strategies helps Provider Firms to successfully
market and deliver this program through comprehensive
training and ongoing support.
Program
Details:
- Provider Firms attend a 3-day
"Boot Camp" qualifying them to offer SockOpter
Corporate Services.
- The June 7-9th Boot Camp is full, but the final
one this year is scheduled for September 13-15th.
There are only a limited numbers of places at this
session so contact us ASAP to reserve a spot.
- Advisors who are interested in serving executives,
but who are unable to commit the significant time and
resources required to market StockOpter® Corporate
Services can either enroll in a free webinar
addressing how to pursue this opportunity or sign up
for a free analysis of their client's stock option
position.
- For more information about any of these offerings
visit http://www.networthstrategies.com/,
email
us or call 877-728-5964.
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