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The first edition of EY Stock Based Incentive Survey 2014 is a comprehensive survey of 110 senior decision makers from global and Indian companies. The survey results manifest interesting insight into today’s employer mindset. It brings to the fore how companies view stock-based compensation as a tool to retain and attract talent, as well as create wealth for the employees. For further information, please visit: http://www.ey.com/IN/en/Services/Tax/EY-stock-based-incentive-survey-the-results
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EY Stock Based Incentive Survey 2014
The results
EY Stock Based Incentive Survey 2014 | The results
Executive summary
Contents
Foreword
Executive summary 4
Need for stock-based incentive plans
6
Plan design features 9
Accounting 18
Plan effectiveness 19
Methodology 21
Glossary 22
EY Stock Based Incentive Survey 2014 | The results
ForewordWe are pleased to launch the first edition of EY Stock Based Incentive Survey conducted by EY India. The objective of the EY Stock Based Incentive Survey 2014 was to gather data on how organizations operate their employee stock-based incentive plans in India and across the globe. We believe that the results will help you understand the current trends and practices in stock-based compensation and will provide good data for developing stock-based compensation policies.
This report is a compilation of the results of our EY Stock Based Incentive Survey 2014. Our survey results manifest interesting insight into today’s employer mindset. It brings to fore how organizations view stock-based compensation as a tool to retain and attract talent as well as create wealth for the employees.
Nowadays, the philosophy of “all employees” coverage has been replaced by “selective employee” coverage. The results reiterate that Indian companies still prefer the conventional employee stock option plans.
Interestingly, majority of the companies surveyed already have a stock-based incentive plan in place. We found that the companies adopt a careful strategy to understand the requirements of the business, assess market conditions and thereafter, design the stock-based incentive plan keeping in mind the overall objective, both from employer and employee perspective.
I am confident that the trends and best practices showcased by EY Stock Based Incentive Survey 2014 will help companies formulate and re-engineer their existing incentive compensation policies.
I would like to thank all the respondents who have taken the time to share their thoughts with us.
We hope to continue to engage with you on the stock-based incentive plan agenda for your organization as you strategize and tailor it to your needs.
Sonu IyerPartner and National Leader Human Capital Global Mobility, EY
4 EY Stock Based Incentive Survey 2014 | The results
Executive summary
1
4
2
3
Companies with stock-based incentive plan in place
71% Yes
29% No
57%use ESOPs
17% use mix of all plans
12% use ESPP
Top sectors for stock-based incentive plans
37%
Technology Media and Telecom (TMT)
20%
Manufacturing and Consumer Goods
14%
Health Care and Life Sciences
11%
Financial Services
5%
Energy, Resources, Infrastructure and
Government
Capital commitment to stock-based incentive plans
Paid up capital committed by companies
Indian companies MNCs
Upto 3% 47% 31%
More than 3% upto 5% 27% 22%
More than 5% upto 10% 13% 33%
More than 10% upto 15% 13% 5%
More than 15% 0% 9%
4
Source: EY’s Stock Based Incentive Survey 2014 (total respondents: 110)
EY Stock Based Incentive Survey 2014 | The results
5EY Stock Based Incentive Survey 2014 | The results
5
6
7
9
8
47% have a vesting period
of more than 3 years upto
5 years
40% have exercise period
of more than 1 year up to
5 years
60% have no lock-in period
post allotment of shares
Stock-based incentive plan design
Stock-based incentive plan coverage
Exit strategy
Accounting
Review of the stock-based incentive plan
87% offer stock-based incentive plans to selective employees only
60% unlisted companies use promoter buy back as an exit strategy
77% have a positive feedback from employees on stock- based incentive plans
38% companies review their stock- based incentive plan annually
71% use fair value method for accounting of stock expense
5
Source: EY’s Stock Based Incentive Survey 2014 (total respondents: 110)
EY Stock Based Incentive Survey 2014 | The results
6 EY Stock Based Incentive Survey 2014 | The results
Need for stock-based incentive plans
Key findings
Of the respondents have stock-based incentive plans in place
71%
Of the respondents state that both employer and employee factors (retention, talent attraction, motivation, reward performance, wealth creation) are reasons for implementing stock-based incentive plan
50%
Of the respondents propose to implement a stock-based incentive plan
7%
Of the respondents have said that retention is the key objective for implementing stock-based incentive plan
16%
EY Stock Based Incentive Survey 2014 | The results
7EY Stock Based Incentive Survey 2014 | The results
Stock-based incentive plans serve multiple and diverse objectives
Stock-based incentives create an entrepreneurial spirit
A win-win situation for both employers and employees
Retention Attract talent Motivation Reward performance
Wealth creation for employees
How the company benefits How the employee benefits
Objective of introducing the stock-based incentive plan
16%
All the factors
50%
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
9% 9% 9% 7%
Stock-based incentive plans aim to serve the dual purpose of promoting corporate performance and creating value for the employees. Half of the respondents have stated that both employer and employee-related factors are the key reasons for implementing stock-based incentive plans. This indicates a clear shift in perspective from early 2000s when talent attraction and retention were the only key objectives. Nevertheless, stock-based incentive plans continue to serve as an important tool for retaining employees, as confirmed by 16% of the respondents (the highest in individual category of objectives).
Moreover our “Global Mobility Effectiveness Survey 2013,” indicated that 58% of the global companies have a global talent management agenda in place, highlighting the growing need of managing and attracting talent. 9% of the respondents from our survey show that stock-based incentive plans will help them fulfill their objective of attracting talent.
Stock-based incentive plans for wealth creation in India, though small, are evolving rapidly. 7% respondents have opined that the objective of introducing stock-based incentive plans is for the wealth creation for employees. Corporate India is also focusing on linking rewards with performance. The combination of ownership and participative management is a powerful competitive tool. Employees are more participatory and assume accountability when treated as business owners — they adopt innovative models to create wealth for the organization and for themselves.
The objective of the stock-based incentive plan may also vary depending on the size and growth cycle of an organization. An established multinational company rolls out stock-based incentive plan with different objectives. Small and new companies, on the other hand, adopt stock-based incentive plan to attract talent by linking ownership and wealth creation.
8 EY Stock Based Incentive Survey 2014 | The results
Are companies offering stock-based incentive plans?
Technology, media and telecom leads in rolling out stock-based incentive plans; manufacturing gearing up
Source: EY’s Stock Based Incentive Survey 2014 (total respondents: 110)
Does your organization have an employee stock based incentive plan - Respondents who said no (32) were asked whether they plan to roll out such a plan in future?
Does your organization have an employee stock-based incentive plan?
Is your organization proposing to roll out an employee stock- based incentive plan
29%
71%
NoYes
No,77%
Yes,23%
More than 70% of the respondents already have stock-based incentive plans in place. In addition, with the recovery of the stock market after 2010, the practice has gained further momentum. Of the organizations that do not have such stock-based incentive plans in place currently, 23% propose to introduce them in the near future.
Around 22% of the total respondents are reluctant to introduce such plans in the future.
Information Technology (IT) companies pioneered stock-based incentive plans in India and still continue to lead. According to our survey of the companies that have a stock-based incentive plan in place, 37% are from the technology, media and telecom sector.
Several companies in other sectors such as manufacturing and consumer goods, life sciences, and banking and financial services are rolling out stock-based incentive plans for their employees. One-fifth of the respondents who have a stock based incentive plan are from the manufacturing and consumer goods sectors.
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
5%
1%
3%
4%
5%
11%
14%
20%
37%
Others
Education
Professional Services
Real Estate and Construction
Energy, Resources, Infrastructure and Government
Financial Services
Health Care and Life Sciences
Manufacturing and Consumer Goods
Technology Media and Telecom
Though technology, media and telecom companies continue to lead the market when it comes to stock-based incentive plans but a common theme of “hiring and retention of critical talent” has ensured that successful and growing organizations across all sectors need a compensation strategy married to stock-based incentive plans.
9EY Stock Based Incentive Survey 2014 | The results
Plan design features
Key findings
Of the respondents prefer Employee Stock Option Plan (ESOP) over other stock-based incentive plans
57%
Of the Indian companies that have stock-based incentive plans have committed up to 5% of the paid up share capital toward such plans
74%
Of the respondents offer stock-based incentive plans to selective employees only
87%
Of the respondents offer shares at market price as on the date of grant of stock options
51%
Of the unlisted companies use “promoter buy back” as an exit strategy
60%
EY Stock Based Incentive Survey 2014 | The results
10 EY Stock Based Incentive Survey 2014 | The results
Plan design features
What?
For Whom?
How much?
When?
At what price?
Select the plan
Select the employee
Decide the capital
Select the discount
Decide the tenure
Designing a stock-based incentive plan
Questions for employers? Choose it “right”
Vesting Period
Exercise Period
Lock-in Period
Employee Stock Option Plan
Employee Stock Purchase Plan
Stock Appreciation Rights
All Employees Selective Employees
% of capital allocated toward each plan
At market price/comparable
Below market price/comparable
Alig
n it
with
obj
ectiv
eR
egulatory considerations
or or
or
or
How? Decide the exit plan Sale over stock exchange
Promoter buy back
or Sale to the trustor
Source: EY analysis
How often? Decide the frequency Annual/Quarterly/Monthly Random/One time
Meaningful and appropriate design features of stock-based incentive plan are most important for the success of the plan. Organizations need to carefully design the stock-based incentive
plans to ensure that all the objectives for which such plans are rolled out, are met.
11EY Stock Based Incentive Survey 2014 | The results
ESOP is widely used by Indian companies; multinationals prefer a mix Our survey revealed that 57% of the respondents favored ESOP, while 17% use a combination of ESOP, Employee Stock Purchase Plan (ESPP) and Stock Appreciation Rights (SAR) plan. However, multinational companies (MNCs) and Indian companies differ in their opinion. MNCs, along with ESOP, also use many variants of stock-based incentive plans such as ESPP and SAR Plan, while Indian companies largely rely on ESOP.
49%
17%
17%
11%6%
Multinational companies
Employee Stock Option Plan
All three
Combination of two
Employee Stock Purchase Plan
Stock AppreciationRights3%
11%
12%
17%
57%
Stock Appreciation Rights(SAR) Plan
Combination of two
Employee Stock PurchasePlan (ESOP)
A mix of all plans
Employee Stock OptionPlan (ESPP)
What type of employee stock-based incentive plan do you have?
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
88%
6%6%
Indian companies
Stock-based incentive plan distribution
While selecting a stock-based incentive plan, the organizations need to ensure that the objective of rolling out such stock-based incentive plan is met. ESOP is the most popular stock-based incentive plan and is well understood both by employers and employees. ESOP and ESPP entail allotment of shares and hence, result in the dilution of share capital of the company. On the other hand SAR plans are generally cash settled and hence, do not result in dilution of share capital of the company.
Since ESOP has a vesting period, such plan is used as a retention tool, whereas, ESPP is mostly used to reward past performance. Our survey revealed that ESPP is primarily used by MNCs.
Unlike the ESOP and ESPP, SAR plan does not involve cash flow from the employees. SAR gives a right to an employee to receive appreciation in the stock price without paying the price. It provides an advantage to an organization by not diluting the equity and, at the same time, offering economic value of equity to the employees.
12 EY Stock Based Incentive Survey 2014 | The results
Companies adopt an “annual strategy” to offer stock-based incentive plans
“Selective” employees only are eligible for stock-based incentive plans
Our survey revealed that 57% of the companies offer stock-based incentive plans on an annualized basis. Another 18% offer these plans on a random basis. The timing of a stock-based incentive plan is decided by the underlying objective of introducing the plan.
2%
5%
18%
18%
57%
Monthly
Quaterly
Random
One time
Annual
Frequency of stock-based incentive plan
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
87%
13%
Selective employees All employees
Individuals eligible to participate under the stock-based incentive plan
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
Of the companies that have stock-based incentive plans in place, 87% offer these only to “select employees.” These select employees are critical/key employees of the organization. The practice has gained dominance after the economic downturn since companies want to keep their key employees motivated. An accurate judgment is required to identify the right mix of people who would get the stock benefits. Determining who should be the recipient of stock benefit may be decided by the criticality of an employee’s role to the organization’s core functions and his/her performance. The qualitative assessment of the role needs to be balanced with the quantitative benefits for employees.
12 EY Stock Based Incentive Survey 2014 | The results
13EY Stock Based Incentive Survey 2014 | The results
MNCs maintain increased capital commitment to stock-based incentive plans than Indian companies
Paid up capital committed by companies
Indian companies MNCs
Upto 3% 47% 31%
More than 3% upto 5% 27% 22%
More than 5% upto 10% 13% 33%
More than 10% upto 15% 13% 5%
More than 15% 0% 9%
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
Our survey indicates that the majority of Indian companies allocate a small part, i.e., up to 3%, of their paid up share capital toward stock-based incentive plans. On the other hand, MNCs commit a higher proportion of share capital toward stock-based incentive plans. Of the Indian companies surveyed, 47% have committed up to 3% of their paid up share capital toward stock-based incentive plans, while the majority of MNCs (33%) have committed more than 5% to 10% of the share capital for such plans.
13EY Stock Based Incentive Survey 2014 | The results
14 EY Stock Based Incentive Survey 2014 | The results
5%
41%
47%
7%
Upto 1 year
More than 1 yearupto 3 years
More than 3 yearsupto 5 years
More than 5 years
Vesting period
18%
40%
30%
12%
Upto 1 year
More than 1 yearupto 5 years
More than 5 yearsupto 10 years
More than 10 years
Exercise period
26%
9%
5%
60%
Upto 3 years
More than 3 yearsupto 5 years
More than 5 years
Not applicable
Lock-in-period
Earn the right to convert option to sharesExercise the right to acquire shares
Restrict the sale of shares
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
One of the most critical design features is the vesting period, since it often serves as a retention tool — with back-ended vesting and longer vesting period, there is an increased possibility that the employee will stay longer with the company. On the other hand, front-ended vesting may not aid in retention but may reward past performance of the employee.
Stock-based incentive plan design
Typically, a stock-based incentive plan runs for five to ten years, during which period an employee earns stock income. Our survey indicates that 88% of the respondents have a vesting period of 1 to 5 years during which the stock options vest and to exercise this right, an employee normally gets 1 to 5 years, as 40% of the respondents revealed.
Our survey also indicated that 60% of the respondents do not have a lock-in period for shares after the allotment. This allows flexibility to employees to sell their shares when they want to.
Our survey revealed that companies with stock-based incentive plans that have a relatively long exercise period, i.e., more than five years, are largely unlisted/private ones.
15EY Stock Based Incentive Survey 2014 | The results
“Uniform vesting” is a commonly adopted practice
Market price forms the basis for pricing of stock-based incentive plans
Our survey indicated that 60% of the respondents have a uniform vesting schedule for stock-based incentive plans, during which an employee earns the right to exercise the stock option in equal proportion over the vesting period.
A combination of different types of vesting with different grades of employees can help companies maintain a balance between reward and retention.
Our survey indicated that 51% of the respondents offer shares under a stock-based incentive plan at market price on the date of grant of stock options and 23% do so at less than the market price on the date of grant of stock options. Exercise price is decided by stock price history, future expectation of growth in stock price and the volatility of the stock market.
2%
5%
19%
23%
51%
Book Value as on March 31st of the year in which the stock options are granted
Fair Market Value certified by Merchant Banker
Face Value (Par Value)
Less than the Market Price as on the date of grant of stock options
Market Price as on the date of grant of stock options
Exercise Price
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
The pricing strategy also depends on the growth phase of a company. Companies should have a compelling rationale before
Vesting types
Performance based
Uniform vesting Cliff vesting Back ended Front ended
60%
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
19% 14% 5% 2%
deciding the exercise price and should be ready to manage the balance in boom and bust cycles.
16 EY Stock Based Incentive Survey 2014 | The results
Exit mechanism varies with type of companies
A robust exit strategy is necessary for the success of a stock-based incentive plan, since an employee should be able to encash his wealth. In case of listed companies, exit is seamless, since the employees are able to sell the shares on the stock exchange. Therefore, it becomes critical and necessary for an unlisted company to provide clear exit mechanism in the stock-based incentive plan to generate confidence and clarity to employees.
Unlisted companies may choose from alternatives such as purchase by the new investor or buy-back by the company/trust/promoter.
Our survey revealed that 86% of the listed companies use sale over stock exchange as the exit strategy for stock-based incentive plans. For unlisted companies, promoter buy back is the most prominently used method, as mentioned by 60% of the unlisted companies
Exit mechanism
Listed company Unlisted company
Sale over stockexchange
86%
Promoterbuy-back 10%
Sale to thetrust 4%
Sale over stockexchange
Promoterbuy-back 60%
0%
Sale to thetrust 40%
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
EY Stock Based Incentive Survey 2014 | The results
17EY Stock Based Incentive Survey 2014 | The results
Companies prefer to administer stock-based incentive plans directly
Implementation
Plan administration
Indiancompanies % MNC’s %
Directly by the company 73% 72%
Through a trust 27% 28%
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
Clearly, a majority of the respondents prefer to administer stock-based incentive plan directly, than through a trust. This phenomenon is consistent for both Indian companies and MNCs.
Plan design is truly critical for the success of a stock-based incentive plan. Adequate time must be invested in pre-plan brainstorming to align the interest of the employees and the company, taking into consideration industry and market trends, employee demographics, current and future business projections within the overall employee reward and retention framework. This is likely to help in articulating the design features best suited for the organization. This, in-turn, would lead to a stock-based incentive plan tailored to meet the needs of the organization.
EY Stock Based Incentive Survey 2014 | The results
18 EY Stock Based Incentive Survey 2014 | The results
Accounting
Key findings
Of the companies that have a stock-based incentive plan use fair value method for accounting of stock expense
71%
Of the companies that have a stock-based incentive plan use intrinsic value method for accounting of stock expense
29%
Fair value 71% Intrinsic Value 29%
Accounting of stock based incentive plans
►
►
►
►
►
►
Fair value is determined by Binomial or Black Scholes Option Pricing Model.Price dependent on external factors such as:
Time valueInterest rateVolatilityDividend yield
It is the excess of the market price of the share over the exercise price.
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
►
Our survey revealed that the fair value method is the most commonly used method for accounting stock-based incentive plans. Fair value is based on external factors such as volatility, dividend yield, interest rate and time value of option. On the other hand, the intrinsic value is calculated as the difference between the market price of the share and exercise price.
EY Stock Based Incentive Survey 2014 | The results
19EY Stock Based Incentive Survey 2014 | The results
Plan effectiveness
Key findings
Companies have positive feedback on stock-based incentive plans from employees
77%
Companies review their stock-based incentive plan annually
38%
Feedback of the employees on stock-based incentive plans
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
Positive Neutral Negative
77%
23% 0%
When asked about the feedback of the employees on the stock-based incentive plans, more than three-fourths of the companies have received a positive feedback from their employees. Interestingly, there is “zero” negative feedback from employees on the stock-based incentive plans.
EY Stock Based Incentive Survey 2014 | The results
20 EY Stock Based Incentive Survey 2014 | The results
Review and alignment of plans is a critical step in the lifecycle of a stock-based incentive plan
Frequency of review of the stock-based incentive plan (from the date of roll out)
Annual
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 78)
Not applicableIn more than 1 year but
up to 2 years
In more than 2 years but
up to 5 years
In more than 5 years
As required
Awareness gap
38%
25%
11%
17%
6%3%
Our survey reveals that 38% of the respondents review the stock-based incentive plans annually. The stock-based incentive plans need to be reviewed periodically, given the changes in share price, tax and regulatory environment. Listed MNCs primarily undertake an annual review, as confirmed by 60% of the respondents. This is in contrast with listed Indian entities, with only 11% respondents signaling an annual review. Indian companies carry out a review in two to five years (34%) and in one to two years (33%).
Stock-based incentive plan review frequency
Period Indian company - Listed
Multinational - Listed
Annual 11%
In more than 2 years but up to 5 years
In more than 1 year but up to 2 years
34%
Not applicable
As required
22%
33%
-
60%
13%
7%
7%
13%
Source: EY’s Stock Based Incentive Survey 2014 (respondents: 52)
Companies must realize that stock-based incentive plans need to be reviewed periodically to make them effective and practical.
Our survey has revealed that stock-based incentive plans have a positive impact on employees. The feedback is encouraging. Therefore, to ensure that the stock-based incentive plan is effective, appropriate periodic review is required. It may be advisable to seek the inputs of employees on the features of the stock-based incentive plans at the time of review to make the exercise more meaningful and robust.
21EY Stock Based Incentive Survey 2014 | The results
Methodology
EY’s Stock Based Incentive Survey 2014 is a step toward identifying the perspective of employers on stock-based incentive compensation schemes. The survey is aimed at understanding the broad trends and practices followed by Indian companies and MNCs operating in India on stock-based incentive plans. This survey was conducted online and through personal interviews between December 2013 and January 2014. It covered a representative panel of 110 senior level respondents, involved in the decision making of the affairs of the companies.
Profile of companies surveyed
11%
20%
28%
41%
Indian Company - Unlisted
Indian Company - Listed
Multinational - Private
Multinational - Listed
Organization type Job Title
7%
14%
15%
32%
32%
Advisors
C Level Executives
Vice Presidents
Directors
Senior Managers
Sector Profile
3%
2%
2%
3%
9%
11%
11%
24%
35%
Others
Real Estate and Construction
Education
Professional Services
Energy, Resources, Infrastructure and Government
Health Care and Life Sciences
Financial Services
Manufacturing and Consumer Goods
TMT
22 EY Stock Based Incentive Survey 2014 | The results
Glossary
Back-ended vesting means increased vesting in the later years of the vesting period.
Cliff-vesting means full vesting at a specified time during the vesting period.
Date of grant of stock options means the date on which stock options are granted to an employee pursuant to the employee-based incentive plan.
Employee stock option plan provides a right to an employee to purchase company’s shares at a pre-determined price at a pre-determined future date.
Employee stock purchase plan provides a right to an employee to purchase company’s shares immediately. Shares acquired under an employee stock purchase plan may be subject to a lock-in-period.
Exercise means making of an application by the employee to the company for issue/transfer of shares against the vested stock options.
Exercise period means the maximum time period after vesting within which the employee should exercise the stock option held by him.
Exercise price means the price at which an employee can purchase shares of the company against the vested stock options.
Front-ended vesting means higher vesting in the initial years of the vesting period.
Lock-in-period means the period post allotment of shares of the company within which the shares cannot be sold or transferred in any manner.
Stock appreciation rights plan entitles the participant to a payment in cash or shares equal to the appreciation of company’s share over a specific period.
Stock option means the right granted to an employee to acquire shares of the company at a future date, subject to the terms and conditions of an employee-based incentive plan.
Uniform vesting is the vesting divided equally over the vesting period.
Vesting means the process by which the employee is given the right to apply for shares of the company against the stock option granted to him in pursuance of the employee-based incentive plan.
Vesting period means the period during which the vesting of the stock options granted to the employee in pursuance of the employee-based incentive plan takes place.
22 EY Stock Based Incentive Survey 2014 | The results
23EY Stock Based Incentive Survey 2014 | The results
How EY can help you
Sonu Iyer
Partner and National Leader - Human Capital Global Mobility, EY+91 11 4363 [email protected]
Mayur Shah
Executive Director+91 22 6192 [email protected]
Amarpal S. Chadha
Partner +91 80 6727 [email protected]
Alok Agrawal
Director+91 80 6727 [email protected]
Dinesh Agarwal
Partner+91 33 6615 [email protected]
Shalini Jain
Associate Director+91 11 4363 [email protected]
For more information, visit www.ey.com/India
Our team
EY’s Global Equity professionals help companies to effectively design, implement, communicate and administer equity-based compensation benefits for their India and global employees.
While analyzing existing plans in each country, EY uses a multi-disciplined approach, focusing on a wide range of business issues across different functional areas including HR, tax, accounting and compliance.
We make recommendations to help you meet your company’s objective of operating in compliance with global payroll, tax, security and labor regulations.
While we use a proven EY methodology to achieve a client’s objectives, we have in addition, developed and offer the following services to be responsive to and flexible in addressing each company’s unique business situation:
► Incentive plan design
► Feasibility and due diligence
► Maximization of corporate tax deductibility
► Review of administrative process
► Creation and rollout of effective employee communication messages
► Support on cross-border tax planning and payroll
► Compliance check with Securities and Exchange Board of India (SEBI) guidelines
In addition, we work with our in-house experts to provide the following services:
► Industry benchmarks
► Valuation services
► Setting up of performance management systems
► Guidance on accounting
Multifunctionalapproach
Adm
inis
trat
ion
proc
edur
es
Accounting
procedures
Communicationprogram
Global tax
expertiseGlobal
compensation
expertise
Corporatetax
deductibility
Plan review, design and
documentation
Cross border planning and compliance
Reportingand
withholding
Equity plan
23EY Stock Based Incentive Survey 2014 | The results
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EY officesAhmedabad2nd floor, Shivalik Ishaan Near C.N. VidhyalayaAmbawadiAhmedabad - 380 015Tel: + 91 79 6608 3800Fax: + 91 79 6608 3900
Bengaluru12th & 13th floor“UB City”, Canberra BlockNo.24 Vittal Mallya RoadBengaluru - 560 001Tel: + 91 80 4027 5000 + 91 80 6727 5000 Fax: + 91 80 2210 6000 (12th floor)Fax: + 91 80 2224 0695 (13th floor)
1st Floor, Prestige Emerald No. 4, Madras Bank RoadLavelle Road JunctionBengaluru - 560 001Tel: + 91 80 6727 5000 Fax: + 91 80 2222 4112
Chandigarh1st Floor, SCO: 166-167Sector 9-C, Madhya MargChandigarh - 160 009 Tel: + 91 172 671 7800Fax: + 91 172 671 7888
ChennaiTidel Park, 6th & 7th Floor A Block (Module 601,701-702)No.4, Rajiv Gandhi Salai, Taramani Chennai - 600113Tel: + 91 44 6654 8100 Fax: + 91 44 2254 0120
HyderabadOval Office, 18, iLabs CentreHitech City, MadhapurHyderabad - 500081Tel: + 91 40 6736 2000Fax: + 91 40 6736 2200
Kochi9th Floor, ABAD NucleusNH-49, Maradu POKochi - 682304Tel: + 91 484 304 4000 Fax: + 91 484 270 5393
Kolkata22 Camac Street3rd floor, Block ‘C’Kolkata - 700 016Tel: + 91 33 6615 3400Fax: + 91 33 2281 7750
Mumbai14th Floor, The Ruby29 Senapati Bapat MargDadar (W), Mumbai - 400028Tel: + 91 022 6192 0000Fax: + 91 022 6192 1000
5th Floor, Block B-2Nirlon Knowledge ParkOff. Western Express HighwayGoregaon (E)Mumbai - 400 063Tel: + 91 22 6192 0000Fax: + 91 22 6192 3000
NCRGolf View Corporate Tower BNear DLF Golf CourseSector 42Gurgaon - 122002Tel: + 91 124 464 4000Fax: + 91 124 464 4050
6th floor, HT House18-20 Kasturba Gandhi Marg New Delhi - 110 001Tel: + 91 11 4363 3000 Fax: + 91 11 4363 3200
4th & 5th Floor, Plot No 2B, Tower 2, Sector 126, NOIDA 201 304 Gautam Budh Nagar, U.P. IndiaTel: + 91 120 671 7000 Fax: + 91 120 671 7171
PuneC-401, 4th floor Panchshil Tech ParkYerwada (Near Don Bosco School)Pune - 411 006Tel: + 91 20 6603 6000Fax: + 91 20 6601 5900