U.S. Equity Compensation Grants to Foreign Employees: Structuring and Reporting Options
Tax Impact of U.S.-Sourced Non-Qualified Options and Grants of U.S. Parent's Shares to Foreign Subsidiary Employees
Recording of a 110-minute CPE webinar with Q&A
This course will provide corporate advisers with a practical and comprehensive guide to the tax and other implications of granting compensatory stock options to nonresident employees.
Outline
- Treatment of non-qualified stock option grants from U.S. company to non-U.S. employee
- Sourcing of income
- Timing of U.S. and foreign company tax
- Foreign tax credit
- Impact of tax treaties
- Grant of equity shares of U.S. parent company to employees of foreign subsidiary
- Recharging agreements
- Transfer pricing implications
Benefits
The panel will discuss these and other important issues:
- U.S. income sourcing methods for non-qualified options granted to non-U.S. employees
- Withholding requirements on U.S. companies on U.S.-sourced equity grants to non-U.S. employees
- What is a “recharging agreement” and how does it work in the context of U.S. parent company grants of equity compensation to employees of foreign subsidiaries?
- Tax impact of recharging on parent company
- Restricted stock units and other forms of equity compensation
- Tax qualified plans on a global basis
- Legal and regulatory issues in relation to global grants - including securities laws; exchange controls and data protection
- Global remuneration regulations affecting equity plans
- Documentation for global plans and how to avoid too many versions
Faculty
Ian Fraser
Partner
Simmons & Simmons
Mr. Fraser has significant experience advising businesses on all aspects of employee incentives. This work... | Read More
Mr. Fraser has significant experience advising businesses on all aspects of employee incentives. This work includes advising on the design and drafting of share incentive plans, manager equity arrangements and cash bonus plans and on the tax, legal and regulatory implications of operating them in the UK and internationally. He advises on HM Revenue & Customs tax advantaged share plans and “unapproved” arrangements and on structuring equity arrangements for new hire and severance packages. He also regularly advises on managing employee equity rights in the course of corporate transactions, including maximising value through the efficient use of tax reliefs.
CloseBob Grayson
Partner
Tapestry Compliance
Mr. Grayson manages the Firm's global legal and tax compliance for all types of share plans, incentives and... | Read More
Mr. Grayson manages the Firm's global legal and tax compliance for all types of share plans, incentives and employment issues. He works with many of the world’s leading companies advising them on developing the best strategy for global compliance. He previously worked with Linklaters for over 10 years, doing finance work in Asia and with the Employee Incentives team in London. Prior to co-founding Tapestry, he was a senior in-house counsel with Shell. His experience includes all aspects of share incentives including global compliance issues, plan design, dealing with internal stakeholders, rule drafting, communications, internal approvals and share hedging.
CloseWilliam D. Wright
Partner
Fisher & Phillips
Mr. Wright is Co-Chair of the firm's International Employment Practice Group. He counsels employers on various... | Read More
Mr. Wright is Co-Chair of the firm's International Employment Practice Group. He counsels employers on various employment, compensation and benefit issues related to the employment of foreign nationals in the U.S., as well as the employment of U.S. permanent residents and citizens abroad. He has worked on compliance issues related to hiring, retention and separation of employees in several jurisdictions.
Close
Craig P. Tanner
Counsel
Reed Smith
Mr. Tanner represents multinational companies with equity compensation, executive compensation, employment, and data... | Read More
Mr. Tanner represents multinational companies with equity compensation, executive compensation, employment, and data privacy programs. In his compensation practice, he works with clients in designing, offering, and implementing international equity-based compensation programs, advising clients on the tax, securities, employment, currency exchange, data privacy, and communications issues that the companies encounter when offering the programs to employees, directors, and consultants throughout the world. He advises clients on cross-border equity compensation issues arising in mergers and acquisitions.
Close