Equity based reward

Global Equity Incentive Survey 2006 - 29/05/2007

The 2006 Global Equity Incentives Survey (GEIS) is one of the most thorough studies on the strategy, design, accounting, compliance, process administration and communications of U.S. and global equity plans. The full survey report is now available at no charge. Our report includes data collected from participants across all industries, headquartered in over 16 countries and with employees in over 38 countries worldwide.

Key findings
The 2006 Global Equity Incentives Survey was conducted in the Spring of 2006, just one year after companies based outside the United States began to recognize expense for stock options under IFRS 2 and a few months after U.S.-based companies began to do so under FAS 123R. The results of the 2006 Survey show new trends - as well as some continuing trends - as multinational companies move out of uncertainty with their equity compensation plans:

• 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

Please click here to access the Survey Executive Summary and full report.