End of Year Checklist for US Stock Plan Administrators (Solium) - 16 Nov 2009

End of Year Checklist for US Stock Plan Administrators

16
11
2009

 

As
the end of the year rapidly approaches, there are many year-end and
start-of-year duties that administrators of stock plans need to start
considering. The checklist below is not exhaustive by any means but may
include many duties that need attention depending on your professional
role, the country of the Issuer and the employee incentive plan(s)
offered by your company.

Reconciliation of Data

• Reconcile stock plan administration data with payroll/HR (new hires/participants and terminations)


• Reconcile employee demographic information to ensure current address, business group, etc.


• Determine last payroll cut-off for stock income and tax withholding in 2009


• Audit tax withholding amounts


• Verify any changes in tax rates for participants


• Verify shares outstanding/and reconcile with Transfer Agent numbers


• Balance amounts received from employees with each payroll location and tax authority


• Ensure all 2009 exercises are processed and reset YTD amounts in your files

Coordination with other Corporate Departments

• Prepare Executive Compensation Disclosures


• (US) 10-K or Q -Compensation data for 10-K for Dec.31st year end or for 10-Q if only quarter end


• Section 16 Insiders -ensure filings are current, file year-end Form 5s if necessary


• Data Requests -requests from other departments (Legal, Tax, Accounting, Finance HR, etc)


• Prepare annual report on 10K and distribute to plan participants


• Coordinate year-end close with Payroll including NQ and ISO reporting


• Prepare for stockholders meeting and proxy voting process (typically in Spring)

Grant based plans

• Prepare for distribution of new grants in 2010


• Income Tax Communications – Communications to participants (Section 6039) for exercise of incentive stock options.


• Collect ISO cash exercise Disqualifying Disposition Surveys


• Report ISO dispositions to Payroll


• Provide audit data for all NQSO and Restricted Stock


• Set-up any Blackout periods necessary for year-end reporting and inform participants


• Run report and inform any participants with expiring options in 2009

Employee Stock Purchase Plans

• Collect ESPP Disqualifying Disposition Surveys


• Income Tax Communications – Communications to participants (Section 6039) for transfer of ESPP shares


• Report ESPP dispositions to Payroll

Employee Communications

• Inform plan participants  of stock market holiday hours and last date for trading/settlement in 2009

• Inform employees of tax slip and statement mailing dates


• Set-up any Blackout periods necessary for year-end reporting and inform participants


• inform any participants with expiring options in 2009

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