Twitter's Stock Incentive Plan | Russian Tax Authorities and Equity Incentive Plans

GEOnews - 18 October 2013

GEO News, Events & Articles from Around the World
www.globalequity.org

Last Chance to Join GEO at NECF in Southern California!

GEO's 3rd Annual National Equity Compensation Forum (NECF) in Rancho Palos Verdes, CA, is next week--23-25 October! If you haven't registered yet, you can still do so here. Thank you to those of you who have already registered; we look forward to seeing you in Southern California in just a few short days!

Be a Part of GEO's 15th Annual Conference Agenda!

GEO is now accepting presentation proposals for our 15th Annual Conference, to be held at the legendary Eden Roc in Miami, FL, from 7 - 9 May 2014. This year, we are pleased to announce that we have introduced a theme to our Conference, which is "Making Connections, Crossing Boundaries, Expanding Your World." Proposals that speak to this theme and build on it are preferred. Anyone interested in submitting a proposal is invited and encouraged to visit GEO's website to learn more about speaker submissions and the submission process. Submissions will be accepted through Friday, 8 November 2013.

GEO Membership

As you develop your 2014 budget, don't forget to include your GEO membership fee. For more than 14 years, GEO has been committed to the equity compensation industry, helping our members advance their careers and access a deep network of industry experts. Continue to learn about the latest industry news and developments, connect with peers from around the world and down the street and experience the warm and welcoming environment that is GEO. We look forward to seeing you throughout the upcoming year.

Don't Miss GEO's European One Day Event (EODE) Next Month!

Join GEO at our EODE next month--Friday, 15 November--to hear practical guidance on the latest hot topics in global equity compliance, administration and design, and hear case studies highlighting some of the most important issues facing global employee share plan professionals. Be sure to register soon to secure your spot! Last year's event sold out quickly!

Join GEO in Australia Next Month for Our Regional Events

Register now for GEO's Australian Regional Events, 19 November in Melbourne and 21 November in Sydney, featuring a half-day of education presented by industry experts and networking with your colleagues and peers. The agenda includes timely topics impacting anyone offering--or considering offering--a stock plan in Australia. Join us and learn lessons from the latest employee share scheme reporting season, get a global equity update on design trends, timely information on current legal developments in Australia and an introduction (or refresher) to offering an equity incentive plan for an Australian company.

Upcoming GEO Webcast on Clawbacks

Please join GEO for a webcast "Incentives are Good, Clawbacks Make them Better" on Monday, 11 November to learn why it is more important than ever to know how and why clawbacks should be used in practice. For more information about this webcast, please visit the GEO website. Registration for it will open soon.

CONFERENCES

23-25 October 2013

2013 National Equity Compensation Forum (NECF)

Rancho Palos Verdes, CA

REGISTRATION OPEN

15 November 2013

European One Day Event (EODE)

Amsterdam, NL

REGISTRATION OPEN

19 November 2013
Australian Regional Event
Melbourne, Australia

REGISTRATION OPEN

21 November 2013

Australian Regional Event
Sydney, Australia

REGISTRATION OPEN

7-9 May 2014

15th Annual Conference
Miami, FL
SAVE THE DATE

WEBCASTS	CHAPTER MEETINGS

11 November 2013 Incentives are Good, Clawbacks Make them Better SAVE THE DATE	14 November 2013 Pacific Northwest Chapter Meeting Seattle, WA REGISTRATION OPEN 20 November 2013 East Bay Chapter Meeting Walnut Creek, CA REGISTRATION OPEN 20 November 2013 D.A.CH. Konferenz Frankfurt, Germany REGISTRATION OPEN

Claudia Baranowski, CEP

Senior Manager, Stock Administration, Illumina

Claudia Baranowski is the senior manager of stock administration at Illumina, Inc., a life sciences company based in San Diego. Since joining Illumina in 2007, Claudia's role managing global equity programs has grown as the company expands and develops. This includes partnering with executive compensation, accounting, tax, and legal to review and assess the implications of broadening equity programs. She has established and streamlined routine operational processes as well as created and regularly delivers education materials to employees on ESPP, restricted stock units, and insider trading policy. Claudia oversees incorporating acquired companies' equity plans into Illumina's programs to ensure consistent processing, in addition to ensuring accurate data is provided to domestic and international payroll for proper reporting.

Claudia is viewed as a key resource, whether working with investor relations when the company recently sought shareholders' approval increasing shares in Illumina's stock plan, answering executives' queries concerning their 10b5-1 plans, or providing perspective and data on the company's historical equity programs and decisions. As her role continues to unfold, upcoming challenges include proposing expansion of international equity programs and ensuring compliance and monitoring global tax developments. (She will rely on GEO for accurate and beneficial information!)

Being a Certified Equity Professional (CEP) has provided Claudia numerous interesting and challenging positions in equity administration and investor relations at private and public technology companies since 1995. She welcomes opportunities to share her expertise and experience through her role as an active board member of the San Diego Chapter of the National Association of Stock Plan Professionals (NASPP). Additionally, Claudia is a member of Athena San Diego, which promotes professional growth for women executives and rising managers in science and technology.

About Illumina

Illumina is a leading developer, manufacturer, and marketer of life science tools and integrated systems for the analysis of genetic variation and function. Illumina provides innovative sequencing and array-based solutions for genotyping, copy number variation analysis, methylation studies, gene expression profiling, and low-multiplex analysis of DNA, RNA, and protein. Illumina also provide tools and services that are fueling advances in consumer genomics and diagnostics. Its technology and products accelerate genetic analysis research and its application, paying the way for molecular medicine and ultimately transforming healthcare.

Britain Challenges Banker Bonus Cap in New Clash with EU

Source: Reuters Britain has launched a legal challenge to the European Union's cap on bankers' bonuses which London fears will hurt its financial industry. Finance minister George Osborne has long argued that Brussels has gone too far with reforms aimed at preventing a repeat of the financial crisis. But EU financial services chief Michel Barnier said the bonus cap was legal.

PRA Consultation on CRD IV Bonus Cap

Source: Clifford Chance The PRA has issued a consultation paper (CP8/13) which includes, amongst other things, further amendments to the Remuneration Code in light of the CRD IV bonus cap. This consultation comes hot on the heels of the recent Government announcement that it has lodged a legal challenge with the European Court of Justice against the bonus cap.

Russian Tax Authorities Paying More Attention to Income Received from Equity Incentive Plans

Source: Deloitte. The Russian tax authorities have begun to focus their attention on the tax returns of Russian citizens, who receive income through participating in equity plans. Over the last year we have witnessed an increase in the number of tax audits initiated by the tax authorities with respect to income from incentive plans.

Co-operatives Stifle Entrepreneurial Spirit

Source: Guardian Facilitating employee share ownership and allowing customers to invest are better incentives than those offered by co-ops. Co-operatives have often been promoted as a viable alternative to traditional businesses, but stubbornly remain a niche sector.

Employee Shareholders - UK Capital Gains Tax Exemption for Employee Shares

Source: Edwards Wildman On 1 September 2013, the Growth and Infrastructure Act 2013 (the GIA) came into force in the UK bringing with it a new statutory employment status, namely the 'employee shareholder'. The GIA provides that, through agreement with his employer and for no financial consideration (although significant employment rights must be given up), an employee shareholder can receive new fully-paid shares worth up to �50,000 in the company that employs him (or that company's parent undertaking) which will be exempt from any capital gains tax on future sale.

Jacqueline McCluskey: Impact of Staff Shareholder Legislation

Source: Employee Benefits Much has been made of Chancellor George Osborne's new employee shareholder legislation, but its impact is yet to be fully understood. While some have criticised the rights-for-equity scheme, saying it is unlikely to even get off the ground, others have said it offers potential benefits to employers and employees alike.

New Requirement for Announcement of Directors' Termination Packages on Departure

Source: CMS From today, new rules apply when a director leaves a UK incorporated listed company. Companies will, at the time of the relevant departure, have to publish on their website details of payments made or to be made to that departing director. The new rules apply to departing non-executive directors as well as executive directors.

Next 18 Months Provide 'Great Opportunity' for Employee Share Ownership

Source: WSB There is a "clear window of opportunity" between now and next year's budget to promote the benefits of employee share ownership, according to the British Private Equity and Venture Association (BVCA). Speaking at the annual ifsProshare conference, BVCA director general Tim Hames explained that a combination of improving economic conditions, cross-party support and growing employee awareness had nurtured the right conditions for employee share ownership to grow significantly over the following 18 months.

Twitter's Stock Incentive Plan for Employees

Source: Business Insider Back in 2011 - when Twitter was raising $800 million in investor funding and using some of that to buy back stock options it had previously granted to employees, as a reward for hanging in there - the company filed this disclosure with the SEC, telling the feds how its stock incentive plan works.

Effective Use of Non-competition/non-solicitation Agreements in the Workplace

Source: Butler Snow Few things can be more frustrating to an employer than spending significant resources training a new employee, allowing the employee access to trade secrets, and introducing the employee to customers, only for the employee to quit and accept a similar job for a competing business. Non-competition/non-solicitation agreements can be valuable tools for employers to protect their trade secrets and mitigate the risk of being placed at a competitive disadvantage down the road.

Good News: California Reduces Its Income Tax Penalty for 409A Violations

Source: Orrick Effective for tax years beginning on or after January 1, 2013, California has reduced from 20% to 5% its additional state income tax on deferred compensation arrangements that fail to comply with Internal Revenue Code Section 409A.

Prysmian Group to Launch Global Share Plan

Source: Employee Benefits Energy and telecom systems organisation Prysmian Group is to launch a global share scheme for around 16,000 employees in 27 countries. The scheme, which is called YES (Your Employee Shares), offers staff the opportunity to buy shares in the organisation at a discount of up to 25% on market price, or at a 1% discount in the case of senior management. It also includes an entry bonus of six initial free shares.