Eximia recently joined GEO’s UK & Channel Islands Chapter event described as a crucial session on discretions, amendments, and mistakes — a true must-attend!
It was led by a panel of global share plan pros who are passionate about employee share ownership and have a vast amount of insight and experience. So, what did we learn about share plan dos and dont’s? In true Britney Spears style, they shared their mistakes and advice so that we don’t ‘Oops… do it again.’
Oops no. 1
The problem: Uh oh, you’ve made awards to the wrong person.
The solution: Think about adjusting your share plan rules to allow for administrative errors.
Oops no. 2
The problem: How often do share plan awards and grants go awry because of new joiners, incorrect leaver treatment or terminations? Fairly often, we imagine.
The solution: Stay close to your HR and management teams. Communicate with them regularly to advise them on best practice and the importance of getting their processes right.
Oops no. 3
The problem: An example was shared about a company who had share plan participants in China – the whole system was paper-based, and the award letters were written in Mandarin. Despite numerous checks and cross-comparisons with the data, the team managing the process forgot to check against the award numbers — this resulted in the wrong award amounts being issued.
The solution: Think about negotiating against unrealistic time scales, to avoid being under similar extreme pressure. Also, if you’re still using paper-based processes, consider going digital.
Oops no. 4
The problem: Loading the wrong award amounts to the wrong people is an issue that occurs frequently – problems can arise when using Excel spreadsheets and moving data around can be problematic, especially if several people with varying Excel skills use the same spreadsheets.
The solution: Learn as you go along and avoid repeating the same mistakes. Perhaps create some form of best practice guide for those using the spreadsheets to refer to if they need some guidance.
Oops no. 5
The problem: People putting incorrect information into the system or not keeping it up to date (e.g. leavers and redundancies).
The solution: Educate managers on how to keep the system updated. Alternatively, consider sending any recharges back to the relevant cost centres.
Oops no. 6
The problem: Receiving short notice of corporate transactions such as initial public offerings (IPOs). Administrators are often told last-minute that these changes are taking place.
The solution: If any corporate transactions are taking happening, share that information with the administrators. The sooner the administrator knows, the sooner they can lessen the impact on participants.
Oops no. 7
The problem: An example was given relating to an incorrect telephone number – it turned out to be an old lady who was getting pestered, so the telephone number was purchased off her to solve the issue.
The solution: Always call numbers and check them before they go out in communications!
Oops no. 8
The problem: When it comes to discretions, some things can go wrong. We can learn from recent ones that have been challenged in court.
The solution: Consider increasing the discretions that are currently in plan rules. Investors are becoming increasingly disappointed if organisations can’t manage unexpected outcomes. Check that your documents are consistent with your rules as aligning your documents will allow you to stand up to scrutiny.
Eximia’s final thoughts…
The problem: There’s just not enough time
The solution: The earlier you engage and collaborate the better as creativity needs time to evolve. Although great results can often be reached in short timescales, it’s always easier with space and time for ideas to mature.
The problem: We’ve got content to change after translations have been instructed!
The solution: Ensure content is approved by all stakeholders before translating as it can be a painful task picking out the odd word or sentence to translate and place into a variety of assets in various places, taking up time and having the extra cost of another round of translations.
The problem: Our strapline and visuals just don’t seem to resonate
The solution: Everyone is different, especially in a global context, so with diversity in mind, share your ideas for a theme with your international colleagues early on to get a global perspective.
If you like the idea of improving your share plan communications, book your free discovery call to chat through your current challenges.
Catch us at the next industry event – see our events calendar for more information.
