Equity Expert: A Podcast from the NASPP

Episode Notes:

• What are cashless ESPPs and how do they work? (3:50)
• Outset Medical’s path to a cashless ESPP (9:08)
• Features of Outset Medical’s new cashless ESPP (11:44)
• Employee reaction to Outset Medical’s new ESPP (13:31)
• Common concerns about cashless ESPPs (15:01)
• Current interest in cashless ESPPs (17:56)

Resources Mentioned in this Episode

• The Problem with ESPPs
• Should You Consider a Cashless ESPP?
• Four Ideas to Make Your ESPP More Equitable
• Are You Overvaluing Your ESPP?

Episode Notes: 

• What is spring-loading? (00:40)
• Reminiscing about the option backdating scandal (4:58)
• Summary of the SEC’s guidance (8:49)
• Impact of SAB 120 on grant valuation (10:31)
• Practical implications of SAB 120 (14:27)
• Disclosures required for spring-loaded grants (19:06)
• Tips to avoid inadvertently spring-loading equity awards (23:30)

Other Resources on This Topic:

• Examining the SEC’s New Guidance on Spring-Loaded Grants
• SEC Targets Spring-Loaded Equity Awards
• Staff Accounting Bulletin No. 120
• Why I Did Not Go To Jail 

Christine Zwerling of Twilio describes her career path in equity compensation, offers tips to be more productive, and discusses her experience and interest in DEI and her interest in the NASPP's DEI Task Force. 

Episode Notes:

• Christine’s origin story (1:06)
• Career challenges (8:39)
• Getting the advice you need (14:01)
• Productivity hacks (15:51)
• Superpowers (20:27)
• Diversity at the NASPP and Christine’s work on the NASPP’s DEI task force (21:57)

Hear how Paz Dizon, the current Head of Stock Plan Services at Jazz Pharmaceuticals, has crafted her career in equity compensation, including finding her superpower and leveraging relationships to drive learning and success. 

In this replay of one of our classic episodes, Sandra Sussman of SAP describes how they are able to offer an ESPP with a 40% match, offer financial assistance to help nonexecutives participate, and solve the challenge of tax withholding at the same time.

Episode Notes:

• SAP's path to the Own SAP plan (1:55)
• How Own SAP works (3:30)
• The 40% Match and 20 Euro subsidy (4:45)
• How SAP manages tax withholding on the plan (5:57)
• Administering the plan (7:08)
• Participation in the plan (8:26)

Other Resources on This Topic:

• Blog: Solving the Challenges of a Global ESPP
• Blog: Four Ideas to Make Your ESPP More Equitable
• Blog: Could Fractional Shares Benefit Your ESPP Participants
• Video: ESPP Design: Match vs. Discount
• Video: Let's Talk About Equity Rights, Equality, and ESPPs

The latest data on how companies pay out equity awards to retirees and how retirement eligibility is determined. Plus, a discussion of the treatment of equity awards in the event of death and disability.

Episode Notes:

• Criteria for determining retirement eligibility (1:06)
• Minimum age requirements (4:31)
• Minimum service requirements (6:43)
• Treatment of equity awards upon achieving retirement eligibility (7:45)
• Prevalence of equity award payouts to retirees (9:32)
• Accelerating vs. continuing vesting upon retirement (11:43)
• Full vs. pro rata payouts to retirees (15:31)
• Treatment of equity awards in the event of death or termination due to disability (17:04)

Resources Mentioned in this Episode:

• NASPP Webinar:   Top Trends from the 2021 Equity Incentives Design Survey
• NASPP Webinar: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Equity Award Usage and Eligibility
• Equity Expert Podcast: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Performance Awards
• 2021 Equity Incentives Design Survey, cosponsored by the NASPP and Deloitte Consulting
• Blog: Pros and Cons of Accelerating vs. Continuing Vesting Upon Retirement

Episode Notes:

• Prevalence of performance awards at tech companies vs. other industries (2:36)
• The growth of TSR Awards (4:52)
• Types of operational metrics that companies commonly tie vesting to (8:29)
• Use of ESG metrics in long-term incentives (9:46)
• Use of multiple performance metrics (11:43)
• Treatment of performance awards in changes in control (15:38)

Resources Mentioned in this Episode:

• NASPP Webinar:   Top Trends from the 2021 Equity Incentives Design Survey
• NASPP Webinar: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Equity Award Usage and Eligibility
• Equity Expert Podcast: Trends in Global Equity Incentives
• 2021 Equity Incentives Design Survey, cosponsored by the NASPP and Deloitte Consulting

We ask Terry Adamson of Infinite Equity what he thinks about paying out TSR awards when performance is negative, using TSR as a modifier, custom peer groups and more.

Episode Notes:

• How much more usage of TSR awards can we expect (1:50)
• Custom peer groups (4:06)
• Paying out awards for negative TSR performance (8:44)
• Using TSR as a payout modifier for other metrics (11:35)
• The benefits our measuring outperformance (13:38)
• Barbara uses a football metaphor (19:37)
• Other market-based alternatives to TSR awards (20:34)
• Barbara and Terry plan a follow-up podcast on relative Sharpe-Ratio awards (24:20)

Resources Mentioned in this Episode

• A Better Way to Calculate Volatility
• Constructing the Pentagon of Incentives
• How to Size Relative TSR Grants with a Stub Period

Episode Notes:

• Mark's background (1:33)
• Types of equity vehicles offered globally (2:07)
• Practices on adjusting awards by location (4:05)
• Prevalence of tax-qualified plans (8:09)
• Update on the UK (13:09)
• Update on Canada (16:35)

Resources Mentioned in this Episode:

• NASPP Webinar:   Top Trends from the 2021 Equity Incentives Design Survey
• NASPP Webinar: Trends in Global Equity Incentives
• Equity Expert Podcast: Trends in Equity Award Usage and Eligibility
• 2021 Equity Incentives Design Survey, cosponsored by the NASPP and Deloitte Consulting

Host: Barbara Baksa, Executive Director, NASPP

Guest: Dana Hall, Designer Brands

Episode Notes:

• About the NASPP’s DEI Initiative
• Dana’s career path (2:12)
• Majoring in human resources (3:14)
• Dana’s role at Designer Brands (7:35)
• What Dana likes about working in compensation (9:06)
• Dana’s role on the NASPP’s DEI Task Force (11:49)
• Dana’s leadership role in Designer Brands’ African American BRG (13:55)
• Internships at Designer Brands (15:35)
• Shoe-related puns (16:47)
• Dana’s advice for growing your career in compensation (17:27)

Resources Mentioned in this Episode:

• NASPP DEI Initiative

Thank you to Bank of America for sponsoring the NASPP's DEI Initiative.

About Our Guest

Dana is a native of Columbus, Ohio and currently works as the Senior Manager of Compensation for the Corporate Offices of Designer Brands Inc. Her team manages the compensation programs for their business segments in the United States. This includes base compensation, short-term and long-term incentive plans. Dana has worked in the field of compensation for over 22 years, primarily in the retail industry.

Dana majored in human resources and graduated with a bachelor’s degree from The Ohio State University. She is a Certified Compensation Professional (CCP) and has also earned her Equity Compensation Associate (ECA) designation.