In the lead up to a vesting, many companies find themselves trying to strike a balance between managing employee expectations, maintaining regulatory compliance, and addressing financial implications – and it can feel daunting.

As the experts in employee share plan management, Computershare can support you throughout the entire plan lifecycle. Below are some key points to help you set company up for a successful vesting.

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Decide the source of your shares

Have you determined how you will source your shares (if required) in preparation for your upcoming vesting? Will you purchase shares, issue new shares, or use an existing trust arrangement? It's important to consider this ahead of time and speak with us to help facilitate whichever option is most appropriate for you.

 
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Establish your vesting population

Leading into vesting season it is imperative that you review and finalise your vesting population. This list is the ‘source of truth' for your entire vesting process and ensuring it is finalised and accurate ahead of time is a crucial step in setting your company up for success. This includes but is not limited to, ensuring that the correct participants are included in the list, and all their personal details are complete and up-to-date.

 
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Determine participant tax treatment

Once your vesting population is finalised it's time to confirm participant tax treatment. Computershare will work alongside you to assign the correct tax treatment for your participants. Depending on where your employees are located, their tax treatments may differ considerably. If employees require ‘sell to cover' or ‘withholding tax to cover' this may differ depending upon where they are domiciled.

 
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Communicate clearly with employees

It's important to communicate with your employees in a clear and timely manner when it comes to vesting to ensure a seamless experience. Whether you need to inform them about deadlines for completing specific tax requirements or confirm correct employee bank account details, having all the relevant details submitted before the vesting will help to ensure a smooth experience for both you and your employees.

Many of our clients use their own internal communication channels to distribute important information, or Computershare can send employee communications on your behalf, to confirm that participant personal and financial details are up to date.

 

These are some of the key steps required in the journey to a successful vesting, and we are here to help. A successful vesting requires proactive planning, diligent administration, and a commitment to transparency.
 

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