In Focus - Spring 2024

Regulatory updates

Updates on international markets: US and Canada move to T+1 Settlement

As a global service provider, many of our clients in Europe and the UK have US share plans, some of which trade on the US or Canadian exchange. For plans which do trade directly on US or Canadian exchange, this is an important update for your plans.

In May 2024, a significant shift occurred in the US and Canadian markets as they transitioned to a T+1 settlement cycle. This move happened over the Memorial Day weekend, and is aimed to streamline securities transactions, reducing the settlement time from the current T+2 standard to just one business day after a trade is executed.

The implementation dates were Monday, 27 May 2024, for Canadian securities and Tuesday, 28 May 2024, for US securities, pending final approval from the CCMA and SEC.

To ensure a smooth transition and ensure our products and services are meeting your organisation’s needs, we have assessed the impact of these changes to our clients and your employee share plan participants. We are pleased to announce that our global teams integrated these changes by the respective go-live dates, including necessary adjustments to the trade settlement process and other related procedures.

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Products and services

Re-starting Irish SAYE schemes

Our teams in Ireland have been working hard over the past 4 years to re-start the Irish Save As You Earn (SAYE) Plan since they were forced to stop when the previous Irish savings carrier bank exited the market.

We are now delighted to announce that a new savings carrier is in the process of being approved to hold savings for Irish Save As You Earn (“SAYE”) plan participants.

This means that employers who wish to launch an approved Irish SAYE plan will soon be able to do so and companies who have an existing SAYE plan in place will be able to offer new grants to their employees, as well as ensuring the security of existing savings within the SAYE framework.

Following Ulster Bank’s decision to exit the Irish market, there has been no savings carrier able to support Irish SAYE grants since 2020, restricting companies from offering approved SAYE share options to their employees and removing a valued offering from their benefits package.

Computershare have been working to find a solution and can confirm that Allied Irish Bank (“AIB”) is now in the process of obtaining approval from the Irish Revenue to act as a savings carrier for approved Irish SAYE. AIB will work with Computershare to support new grants. Clients who want to re-launch or create a new SAYE plan, or who want to understand more about savings currently held in a SAYE plan can do so by getting in touch with your Computershare Relationship Manager.

SAYE allows participants to save up to €500 a month for a savings period of 3 or 5 years, and at the end of the savings period, the employee can choose to convert their savings into shares in their employing company at a pre-determined and discounted option price. The employee has the option to withdraw their savings at any time, making it a low-risk, high reward benefit, and the employee does not pay Income Tax on any gain made.

Computershare’s View:

This is an exciting development for the Irish share plans industry and will be welcomed by companies who offer or aspire to offer SAYE as an employee benefit. We have seen keen interest from our clients who want to launch new SAYE grants, in particular, where a similar plan is being offered to employees in another jurisdiction.

If you are looking to re-start your Irish SAYE scheme or would like to learn more about how your employees may benefit from such a plan, please contact your Relationship Manager for more information.

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Local share plans for global companies: US 423b coming to EquatePlus

Computershare is pleased to share that we are planning to integrate US 423b tax-qualified plans into our global EquatePlus platform, alongside other local and international plan variations. This strategic move underscores our commitment to ensure our products and services meet our customers’ global needs.

This traditional local plan is well entrenched in the US offering employees favourable tax treatment, allowing them to purchase company shares at a discount of up to 15% and contribute up to $25,000 annually. Companies can also incorporate a 'lookback' feature, ensuring that employees receive the discount at the most beneficial price point.

Computershare’s View

We believe that Qualified US 423b plans represent a strategic tool for multinational organisations looking to enhance their US workforce benefits. The combination of tax advantages, lookback provisions, and substantial contribution limits make these plans highly appealing to employees. Introducing US 423b to EMEA companies can help them demonstrate a commitment to attracting, motivating, and retaining top talent within their US operations, thereby ensuring long-term organisational success and competitiveness.

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Enhanced Participant Plan Holdings Statement coming soon

As part of our ongoing commitment to enhancing the EquatePlus participant experience, we are excited to announce that over the coming months, your participants will gain access to an updated Participant Plan Holdings Statement, previously known as the “Current Statement.”

This updated statement allows participants to:

• Show the value of their holdings: Participants can easily display the value of their holdings and verify ownership at any given date.
• Access key information: The statement clearly outlines account ownership details and other essential information, making it useful in a variety of situations.

Additional benefits of the updated Participant Plan Holdings Statement include:

• Improved comprehension: The new design provides a clear and consistent portfolio overview that aligns with the EquatePlus experience. It includes a complete list of holdings and all transactions within the statement period.
• User-friendly layout: Utilising simple terminology and the familiar EquatePlus categorisation structure, the statement is organised by plan, asset type, and availability, making it easier for participants to understand.

Participants will be notified of the updated statement is available to them through the EquatePlus participant portal.

For a preview of the updated statement design and more information, please click here.

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Making it easier for participant to engage with their Employee Share Plans via EquateMobile

We have created resources to help make it easier for you to engage with your participants that have access to EquateMobile. The resources are available in all eight EquateMobile languages. These include a website information page and a brand new EquateMobile video, highlighting the many benefits and features available, with clear instructions to help participants download the app. Please click here to find out more.

If you do not currently have the app on your account and would like to know more about how users of EquateMobile are 3.5x more likely to engage with their employee share plan, please contact your Relationship Manager.

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Making the management of your employee share plans easier: EquatePlus and EquatePlus Reporting refresher training

You and your teams are invited to attend an EquatePlus refresher and EquatePlus Reporting training sessions. Below are the details outlining the agenda for each session.

EquatePlus Refresher Training

EquatePlus Reporting Training

We look forward to your participation and engagement in these informative sessions.

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Events and webinars

Annual Client Conference

Join us at our exclusive Computershare Annual Client Conference in either London, Zurich, or by livestream. This conference promises to be an engaging and informative one-day event. By hosting the event in two locations, we hope you will be able to join us in person. Additionally, having listened to your feedback from last year, we have expanded opportunities for networking and interactions with your peers.

London
Wednesday, 11 September 2024
9.30 am – 4.30 pm (BST), followed by a networking event
Location: London Stock Exchange (LSE), 10 Paternoster Square, London EC4M 7LS
Event Type: In-person and on livestream

Zurich
Thursday, 19 September 2024
9.30 am – 4.30 pm (CEST), followed by a networking event
Location: Mandarin Oriental Savoy, Poststrasse 12, 8001 Zurich
Event Type: In-person only

Spaces are limited, book your place now to attend in person. If you’d prefer to join the conference live from our virtual platform, we’re also delighted to be showcasing the London conference virtually, so you won’t miss a thing.

In-Person Registration  Virtual Registration

 

What can you expect?

• A business update from our CEO Francis Catterall and Jay Foley, Managing Director Employee Share Plans EMEA, who will provide updates on our global and regional business including our future objectives.
• Adrian Wyss, Head of Product Innovations, will provide an in-depth review of our EquatePlus Product Roadmap, including detailed survey results from your employee participants.
• Client panel discussion on implementing global employee share plans across the globe, with a focus on navigating complexities of global plans.
• Client panel discussion on using technology to improve management of your employee share plans to improve engagement.
• Client Panel discussion on the future of equity – what’s next and how it may impact your employee share plans.
• Breakout sessions, an opportunity to hear from industry experts and speak with your peers. The sessions will include Financial Reporting and the chance to explore EquateInsights.

We look forward to welcoming you and your team either in-person or virtually to this year's Computershare Annual Client Conference. Together let’s shape the future of employee share plans.

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GEO Conference updates from Nashville

Attending the GEO annual conference in Nashville was a great experience that brought together experts in equity compensation. This flagship event hosted by GEO serves as a platform for academics, thought leaders, employee share plan experts, and advisors from across the globe to collaborate on advancing the future of employee share ownership.

It was great to see many of our global clients and the Computershare team unite at this conference on stage and off, especially at our pre-event which offered a wonderful opportunity to connect with familiar faces and forge new relationships within the industry.

The GEO Awards was truly a highlight of the conference. For over two decades, the GEO Awards have recognised outstanding companies worldwide for their commitment to promoting employee ownership. We are proud to congratulate the following Computershare clients who were honoured at the awards ceremony for their exceptional efforts.

• Telefonica – Best Plan Communication
• SThree plc – Best Plan Communication
• BAE Systems – Best use of Employee Share Plans in an Emerging Market
• Amazon – Best use of Technology
• DHL – Best use of Technology
• Boston Scientific – Best use of Technology
• Siemens Energy – Most Creative Solution

Looking ahead, we eagerly anticipate the GEO Annual Conference in Prague next year.

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Industry leaders: Ericsson employee share plans conversation – watch on-demand

You can now watch a playback of this month's ‘Client in Conversation’ webinar between Jay Foley, Managing Director of Employee Share Plans, and Hans de Jong, Subject Matter Expert, as they discuss Long Term Variable (LTV) plans at Ericsson.

Hans recounts the challenges and successes of implementing global and local employee share plans in a complex, dynamic, and ever-changing environment.

During the conversation, you'll hear how a plan from the 1990s, which had over 100 million shares owned by employees, ultimately succumbed to its success.

Watch Now

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Celebrating excellence at ProShare event in London

In an inspiring display of recognition and innovation, several Computershare clients and employees congregated at the ProShare Celebrating Excellence event on 24 April in London. This event, known as ProShare's renowned share plans masterclass, serves as a platform where award-winning companies engage in live presentations, insightful panel discussions, interactive sessions, and offer valuable insights into their strategies, challenges, and success stories, sharing invaluable tips and the secrets behind crafting award-winning submissions.

Last year's awards ceremony witnessed a wave of success for numerous Computershare clients. Noteworthy winners included Comcast for Most Effective Communication of an Employee Share Plan (5,000+), Diageo for Most Effective use of Technology (5,000+), Indivior for Most Effective Communication of an Employee Share Plan (501+), Rio Tinto for Most Effective use of Technology, and SThree for Most Effective Communication of an Employee Share Plan (501+).

We are now turning our attention to the 2024 ProShare Annual Awards and extend our support to those considering making an award submission. If you are considering making an award submission you can partner with the Computershare team to write your submission. Please speak with your Relationship Manager for more information.

There are several categories you can enter award submissions which include:

• Best New Share Plan
• Best International Share Plan
• Most Effective Communication of an Employee Share Plan
• Best Employee Share Plan Outcome following a Major Corporate Change
• Best Commitment to Employee Share Ownership in a Private Company

For those fortunate enough to be shortlisted, the unveiling of winners takes place at The ProShare Annual Awards Dinner, a prestigious event that stands as a highlight in the employee share plan industry's annual calendar.

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