Ensuring your participants find value in your equity plans is crucial and can affect multiple aspects of your business from attracting the most qualified talent to retaining key executives. If you are considering granting equity in jurisdictions outside your home country, take a look at this presentation. Hear from an issuer company on their approach to offering tax-qualified plans around the globe. This dynamic panel includes Mike Pewton from Solium, Angela Blair from Johnson Controls, Suzannah Crookes from Pinsent Masons, and Dennis Weinhold from Novartis.

1. Global Tax Advantaged Plans
Mike Pewton, Executive Director, Solium
Suzannah Crookes, Legal Director, Pinsent Masons
Dennis Weinhold, Head of Equity Programs, Novartis
Angela Blair, Manager, Governance & Shareholder Services, Johnson Controls

2. Welcome Speakers
Thank you for speaking at GEO’s 17th Annual International Conference in
Boston. We are very excited about this year’s line up.
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3. Our speakers
Mike Pewton
Solium – Executive Director
mike.pewton@solium.com
Angela Blair
Johnson Controls, Inc.
Manager, Governance & Shareholder
Services
Angela.Blair@jci.com
Suzannah Crookes
Pinsent Masons – Executive Director
Suzannah.Crookes@pinsentmasons.com
Dennis Wienhold
Novartis - Head of Equity Programs
dennis.weinhold@novartis.com

4. Speakers on the Spot
Question to
• Angela Blair Johnson Controls
• Dennis Weinhold

5. Audience on the spot
• How many use tax advantaged plans?
• What are the reasons
• For doing so?
• For not doing so?

6. Audience on the spot
• How many of the following countries have tax
advantages that could be used for share plans
Morocco
Puerto Rico
UK
USA
Ireland
Spain
Denmark
Norway
Australia
China
France
Germany
Hungary
South Africa
Sri Lanka
Belgium
Switzerland

7. Let’s take a look at one or two in
particular
UK
Switzerland
USA
France

8. Swiss tax discounts on equity awards
| Presentation Title | Presenter Name | Date | Subject | Business Use Only8
Restricted Stocks

9. | Presentation Title | Presenter Name | Date | Subject | Business Use Only9
Restricted Stock Units
In case of an additional blocking/deferal election the
same market value reduction will apply at vesting/
taxation date
Swiss tax discounts on equity awards

10. UK “approved” plans
• Bring into capital gains rather than income tax regime
(top rate 28% rather than 45% plus NICs)
• Executive Plans
o Company Share Option Plan “CSOP”
o Enterprise Management Incentives “EMI”
• All-employee Plans
o Sharesave/SAYE - option plan with savings element
o Share Incentive Plan/SIP - share purchase plan with matching/
free shares and dividend reinvestment

11. • Executive plans
o conditions and limits
o tax saving v complexity
o is there sufficient value in it?
• All-employee plans
o little flexibility on plan design
o balance consistency with global plan against UK tax advantages
o workforce expectations?
UK “approved” plans

12. US approved plans
• Really?

13. French approved plans
• Really?

14. Is there hope for cash plans?
• Tax planning
• Social security contributions
• Reinvestment of awards?
• Are complexities the motive behind cash awards
(and non use of tax advantages)
• Other

15. Using Tax advantaged plans?
Complex Expected
Insufficient benefit Go the extra mile
Lack of understanding Increase take up
Difficult to manage Increase tax efficiency

16. • Not if you understand them
• Not if you work through them
• US, France & UK are the most complex and the
most diffuse
• Would anyone like us to go through the French
approved Plan?
Complex
Thought so

17. • Spain €12,000 (or 40%)
• Canada 50%
• Israel (no tax until Sale)
• US, France & UK
Insufficient benefit

18. • Local companies understand
• Employees understand
• Do advisors understand?
Lack of understanding

19. • Many need no specific changes to Plan rules
• Local company is often aware of this
• Employees are often aware of this
• Manage through your tax guides
Difficult to manage

20. • UK, US, France, Ireland
• Employees will be disappointed
• Manage expectations and obligations through your tax
guides
Expected

21. • Shows company commitment globally
• Shows local buy in
Go the extra mile

22. • Plan will be more popular
• Look at take up in traditional tax approved countries
Increase take up

23. • Through plans
• No social security for local company
• Also think of timings (tax years ends)
• And exemptions for CGT, transfers etc.
• Look at take up in traditional tax approved countries
Increase tax efficiency

24. Audience on the spot
• How many are thinking of exploring the use of tax
approved plans?

25. Thank You
Mike Pewton
Solium – Executive Director
mike.pewton@solium.com
Angela Blair
Johnson Controls, Inc.
Manager, Governance & Shareholder
Services
Angela.Blair@jci.com
Suzannah Crookes
Pinsent Masons – Executive Director
Suzannah.Crookes@pinsentmasons.com
Dennis Wienhold
Novartis - Head of Equity Programs
dennis.weinhold@novartis.com

26. Thank You Thank you for attending GEO’s 17th
Annual International Conference
in Scottsdale. We hope you enjoyed
this session.
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