The survey is now closed to further participation.
PwC's annual Global Equity Incentives Survey covers a wide range of topics related to expensing, compensation strategy and design, country-specific tax planning and compliance, plan administration, and employee communications. The 2007 Survey will build on the insights gained over the last four surveys to help multinational companies as they monitor trends in equity compensation and plot their strategic position within their markets. Each participating company will receive the results of this extensive Survey free of charge.
Speaking at the launch of the 2007 Global Equity Incentive Survey Process Gearóid Deegan, Partner, HR Services, PwC Ireland said:
"With the accounting changes now affecting all forms of equity compensation, this important form of benefit has moved to centre stage in both corporate financials and corporate governance. Understanding the emerging trends in equity compensation is essential in order for companies and their people to reap the benefits as companies continue to work through the challenges. Our survey aims to be a helpful source to business when designing and administrating this very important element of compensation in an increasingly sophisticated world".
Pat Mahon, Senior Manager, HR Services, PwC Ireland added:
"Last year's Survey was conducted just a year after companies based outside the United States began to recognise expense for stock options under IFRS 2 and a few months after US - based companies began to do so under FAS 123R. The results of that Survey showed new trends, as well as some continuing trends, and a greater focus on the need for employee communications as multinational companies move out of uncertainty with their equity compensation plans."
Emerging trends included:
- A continuation of the three-year trend indicating a decline in plain vanilla stock options (both prevalence and size of grants), along with a new attention to which countries outside company headquarters participate in stock option grants;
- More diversity in plan design, with a greater emphasis on full value shares and performance-based compensation;
- Increased diversification in the design of service-based equity plans among various staff levels;
- Continued challenges and sophistication in equity compensation plan design related to tax planning, compliance, administration, and communication.
The 2007 Survey now open will gather data from such functional areas as compensation, finance, accounting, tax, stock plan administration and shareholder services to monitor the ongoing development of trends in equity compensation, including:
- financial reporting
- corporate tax
- corporate controls
- customization of plan design to specific demographic groups
- customization of plan design to changing local country contexts
- performance and market based metrics
- valuation
- total rewards
To participate in the 2007 Global Equity Incentives Survey or to ask a question about it, just send an email with the contact information to Jessica Webbley at PwC Ireland or email. Companies that submit responses to the Survey before 14 July will receive a copy of the full Report at no charge. Closing date for submission is 14 July 2007.
