Demands on share plan data are greater than ever before. With a growing necessity for supreme data integrity, it's time to explore the POWER OF ONE. See how HR, Legal, Finance and Payroll can be enabled through adopting a centralised hub.

1. The Power of One: Exploring the Benefits and
Drawbacks of Centralised Share Plan Data
SPEAKERS
June Davenport, Executive Director, Corporate Services, Solium (UK)June Davenport, Executive Director, Corporate Services, Solium (UK)
Warren Nash, Global Share Plan Manager, SABMiller (UK)

2. Outline
• About us
• Share plan data then and now
• What is the power of one?What is the power of one?
• Organisational groups and relationships to share plan data
• Architectural decisions and considerations
Potential benefits and drawbacks of the data hub• Potential benefits and drawbacks of the data hub
• Part of broader trends
• Assessing return on investment
• Review

3. About usAbout us
Solium
• Founded in 1999
SABMiller
• One of the world’s leadingFounded in 1999
• Solium Shareworks Premier
• Operations in UK, US,
Canada Australia
One of the world s leading
brewers
• 200+ beers
• Major bottler of Coca-Cola
Canada, Australia
• 3,200 clients in 150+ countries;
1 million+ participants
Pl i it b th
j
• Operations on six continents
• 70,000 employees in 75+
countries
• Please visit our booth
countries
• Range of equity incentives

4. Share plan data then…
• Before expensing (aka the Cretaceous period)
• Share plans were simple and often managed by
HR
• For data management spread sheets and simpleFor data management, spread sheets and simple
databases were sufficient
‘You could manage a share plan with‘You could manage a share plan with
WordPerfect and some Typex.’

6. The fallout
• The share plan climate changed
• Different regulatory landscape• Different regulatory landscape
• Strange new plan types developed
• Service providers needed to evolve to surviveService providers needed to evolve to survive

7. Today
• Share plans are highly regulated and growing more so all
the time
• FATCA and the gang, RTI, global tax expensing
• Data integrity is at the core of compliance and risk
mitigationmitigation
• in-teg-rity: the state of being whole, entire, or undiminished;
• in-teg-rity: security
A d th t t k t th f• And that takes us to the power of one

8. So, what is the power of one?
• Is it a data source issue?
• Is it a data storage issue?• Is it a data storage issue?
• Is it a single vs. multi vendor issue?
• Quick answer  No. But let’s look at these more closely.

9. Who cares about what?
Legal & compliance
• Securities and
HR & benefits
• Demographic info• Securities and
regulatory reporting
• Board and executive
• Demographic info
• Remuneration info
• Communication
• Local laws
Communication
• Education
• Employee portal
• Mobility tracking

10. Who cares about what?
Finance
• Expensing under ASC
Payroll
• Tax withholding and • Expensing under ASC
718 and IFRS 2
• Financial reporting
• Tax withholding and
remittance
• Monitoring limits p g
• Recharge
g
• Reporting

11. How do they store it?
Internal groups: Legal, HR, payroll and finance
Independent silos Shared silo

12. How do they store it?
FinanceLegal HR Payroll
Global taxation and mobility, real-time info,
FATCA, etc.

13. Data sourcing and storage
• Not a source issue - always multiple sources of share
plan data
• Not a storage issue• Not a storage issue
• Goal is to eliminate redundant data stores
• It’s not about how you store information, but
how you’re enabling it to flow

14. Is it a vendor issue?
• Sometimes
Record keeperRecord keeper
Participant portal
Corporate reporting
Gl b l t ti d bilit
Do they enable
automated data
Global taxation and mobility
Broker
Registrar (transfer agent)
automated data
flow among each
other? Is that flow
transparent?
Trust/custodian

15. Is it a vendor issue?
• Not necessarily
• You need connections
between those vendorsbetween those vendors
• Eliminate roadblocks
• Let traffic flow

16. A single versionA single version
of the truthof the truth

17. The hub. What is it?
• A centre around which other things revolve or from
which they radiate; a focus of activity, authority,
transportationtransportation
• Subway station, airport or even a roundabout (traffic circle)
• Does a transportation hub store people?
• No. It’s an intersection.
• Does it require different systems to work together?
• Absolutely Air subway rail bus car People with different needs• Absolutely. Air, subway, rail, bus, car. People with different needs.

18. The share plan hub
P l E itPeople Equity
GovernanceParticipants

19. Share plan lifecycle HR
Legal
People &
plans
Finance
Audit &
compliance
Legal
HR
Legal
C li
GrantTax
Compliance
Data Hub
Expense
Corporate
Trans-
actions
HR
Payroll
HR
p
tax
Vest
actions ay o
Finance
HR
Payroll
HR
Payroll

20. Are you ready for ‘the hub’?
• Is it necessary? Is there a demand? Needs assessment
• Anticipate future needs• Anticipate future needs
• Do you have a centralised HRIS or are planning for it?
• Facilitates but not essential
• Do you have cross stakeholder engagement?
f fThe key is to set yourself up for success

21. CauseCause
and effectand effect

22. Effects
• Stakeholder empowerment
P ti i t i• Participant experience
• Effective delivery of strategic objectives

23. Causes
• Data integrity
• Security
• Utility• Utility
• Visibility and flexibility
• Reporting enginep g g

24. Potential drawbacks
• Challenge of change
• Turf warsTurf wars
• Ownership and control?
• Cultural buy-iny
• Stakeholder expectations

25. Broader trends
• Tax compliance and remuneration
• Shareholder activism
• Governance and compliance
• Corporate tax
• Tax men internationally
• ‘I want it now’ (US, UK)
• ‘I want it yesterday’ (South Africa)I want it yesterday (South Africa)

26. Return on investment
• Are you getting the most out of your share incentives?
• Financial bottom line?
• Do you provide enough information to participants?• Do you provide enough information to participants?
• Are they self sufficient?
• Are you making better use of time?y g
• Are you sleeping better?

27. The lawThe law
of unintended
consequences

29. Any questions?
June Davenport
Executive Director, Corporate ServicesExecutive Director, Corporate Services
Solium (UK)
june@solium.com