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Global Tax Advantaged Plans
Mike Pewton, Executive Director, Solium Suzannah Crookes, Legal Director, Pinsent Masons
Dennis Weinhold, Head of Equity Programs, Novartis Angela Blair, Manager, Governance & Shareholder Services, Johnson Controls
Welcome Speakers Thank you for speaking at GEO’s 17th Annual International Conference in Boston. We are very excited about this year’s line up. • Please use this presentation template for your slides. Sessions have been designated
as 60 minutes in length. • Please send your final PowerPoint presentation to [email protected] no
later than 11 March 2016. • If you wish to change the title of your presentation, please notify Robyn Shutak as
soon as possible. These titles are used on our website, our event app, and in print materials.
• Be sure to complete your hotel reservations by 25 March 2016. Find more information at http://www.globalequity.org/geo/Boston2016-Hotel.
• If you have any questions, please contact Robyn Shutak at +1.714.630.2908 x104 or [email protected].
Our speakers
Mike Pewton Solium – Executive Director [email protected]
Angela Blair
Johnson Controls, Inc. Manager, Governance & Shareholder
Services [email protected]
Suzannah Crookes Pinsent Masons – Executive Director
Dennis Wienhold Novartis - Head of Equity Programs
Speakers on the Spot
Question to • Angela Blair Johnson Controls
• Dennis Weinhold
Audience on the spot • How many use tax advantaged plans? • What are the reasons
• For doing so? • For not doing so?
Audience on the spot • How many of the following countries have tax
advantages that could be used for share plans
Morocco
Puerto Rico
UK
USA
Ireland
Spain
Denmark
Norway
Australia
China
France
Germany
Hungary
South Africa
Sri Lanka
Belgium Switzerland
Let’s take a look at one or two in particular
UK Switzerland
USA France
Swiss tax discounts on equity awards
| Presentation Title | Presenter Name | Date | Subject | Business Use Only 8
Restricted Stocks
| Presentation Title | Presenter Name | Date | Subject | Business Use Only 9
Restricted Stock Units
In case of an additional blocking/deferal election the same market value reduction will apply at vesting/taxation date
Swiss tax discounts on equity awards
UK “approved” plans • Bring into capital gains rather than income tax regime (top rate 28% rather than 45% plus NICs)
• Executive Plans o Company Share Option Plan “CSOP”
o Enterprise Management Incentives “EMI”
• All-employee Plans o Sharesave/SAYE - option plan with savings element
o Share Incentive Plan/SIP - share purchase plan with matching/free shares and dividend reinvestment
• Executive plans o conditions and limits
o tax saving v complexity
o is there sufficient value in it?
• All-employee plans o little flexibility on plan design
o balance consistency with global plan against UK tax advantages
o workforce expectations?
UK “approved” plans
US approved plans
• Really?
French approved plans
• Really?
Is there hope for cash plans?
• Tax planning
• Social security contributions
• Reinvestment of awards?
• Are complexities the motive behind cash awards (and non use of tax advantages)
• Other
Using Tax advantaged plans?
Complex Expected Insufficient benefit Go the extra mile Lack of understanding Increase take up Difficult to manage Increase tax efficiency
• Not if you understand them • Not if you work through them • US, France & UK are the most complex and the
most diffuse
• Would anyone like us to go through the French approved Plan?
Complex
Thought so
• Spain €12,000 (or 40%) • Canada 50% • Israel (no tax until Sale) • US, France & UK
Insufficient benefit
• Local companies understand • Employees understand • Do advisors understand?
Lack of understanding
• Many need no specific changes to Plan rules • Local company is often aware of this • Employees are often aware of this • Manage through your tax guides
Difficult to manage
• UK, US, France, Ireland • Employees will be disappointed • Manage expectations and obligations through your tax
guides
Expected
• Shows company commitment globally • Shows local buy in
Go the extra mile
• Plan will be more popular • Look at take up in traditional tax approved countries
Increase take up
• Through plans • No social security for local company • Also think of timings (tax years ends) • And exemptions for CGT, transfers etc. • Look at take up in traditional tax approved countries
Increase tax efficiency
Audience on the spot • How many are thinking of exploring the use of tax
approved plans?
Thank You Mike Pewton
Solium – Executive Director [email protected]
Angela Blair
Johnson Controls, Inc. Manager, Governance & Shareholder
Services [email protected]
Suzannah Crookes Pinsent Masons – Executive Director
Dennis Wienhold Novartis - Head of Equity Programs
Thank You Thank you for attending GEO’s 17th Annual International Conference in Scottsdale. We hope you enjoyed this session. • If you require CPE Credit, don’t forget to Sign Out
• Two ways to give us your feedback on this session o Mobile app o Paper surveys available at the door
Special thanks to our Audio Recording Sponsor
