companies want to offer equity on a global basis. It’s a noble goal, but an
administrative nightmare when your internal systems such as HR, payroll and
stock administration do not interface across borders. How do Human Resources and Payroll
communicate vital employee information to you?
How do you communicate back? How do you track and tax mobile employees
appropriately? What do you do when there
aren’t any resources available to you? Before
you develop that manual process involving never ending spreadsheets, consider
this: The answer may be to turn to tech
tools – or maybe not!
can use tech tools to solve all your administrative problems, you need to ask
some hard questions about your data:
· Data Privacy: Just because
you can, it doesn’t mean you should! Does
the company have the right to transfer this data over country borders? (or any borders, for that matter). What rule
or exemption does the company rely on and how often do you revisit that
· Data Security: Once you know that you can (legally and
physically) transfer the data, how can it be done securely? Is email encrypted within your company? Is
encrypted email even “good enough”? Do you have secure networks?
· Data Access and Storage: Who can see what data? What controls are in place to limit data
access to only those who need to know?
What do you do with the data when it is no longer in use? How long are
you required to keep it?
· Data Type and Tracking: Are
you tracking all the data you need to facilitate global equity administration?
Does your platform assist you in global administration or does it hinder you –
and do you actually know what your system can do?
your data questions are answered, you have still more challenges to face in
administering global equity programs:
· Payroll reporting: there is no truly “global” payroll
system. How do you make sure that the equity
gains and taxes withheld are reported back to local payrolls in a timely manner
and in local currency!
· Country specific securities
law and tax filings: How do you keep up
with a global calendar when every country has different filing requirements and
deadlines and they keep changing? How do you send information securely to those
who are completing the required filings and forms?
· HRIS systems: Are you receiving world-wide information
feeds? What information are you
receiving and do you really need all of it? Does every HRIS contact understand
the importance of making timely updates?
· Mobility: The wandering employees who just won’t settle
down. Who is tracking their travels and
how you are making sure appropriate legal compliance is met and their taxes are
accurately withheld and remitted by local payrolls?
· Communication: Language barriers are just one
challenge! How do you ensure that
country specific grant details make it to the intended audience?
· Knowledge: Do you have the
knowledge you need? How about the colleagues you rely on in all those local
offices? Or, senior management? Are there any tools to assist?
· You REALLY want to automate
at least some of your processes. But
should you? Will automation save you
time and produce an auditable result?
We will explore several case studies during our session at GEO's 17th Annual Conference next week in Boston where these
questions were asked, examine the tech tools developed as a result and consider
whether or not automation was the right solution.