Equity Compensation - Alternatives Pt. 2
Author: Daniel Johnson
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This course explores various alternative equity compensation strategies, including Restricted Stock, RSUs, Stock Appreciation Rights, Phantom Stock, and ESPPs. Participants will examine the key features, tax implications, and suitability of each strategy. They will learn to assess the impact of taxes and develop strategies to optimize outcomes for employees and employers. By the end of the course, participants will be equipped to design effective alternative equity compensation plans.
Publication Date: October 2024
Topics Covered
- Features and tax implications of alternative equity compensation strategies
- Comparing benefits and drawbacks of each strategy
- Evaluating suitability based on organizational goals and needs
- Impact of taxes on compensation strategies
- Optimizing outcomes through effective plan design
Learning Objectives
- Identify the key features, mechanics, and tax implications of alternative equity compensation strategies, including Restricted Stock, Restricted Stock Units (RSUs), Stock Appreciation Rights, Phantom Stock, and Employee Stock Purchase Plans (ESPPs)
- Explain how to compare and contrast the benefits and drawbacks of each alternative equity compensation strategy, considering factors such as vesting schedules, transferability, and employee motivation
- Explain how to evaluate the suitability of various alternative equity compensation strategies based on an organization's specific goals, financial situation, and employee demographics
- Identify and assess the impact of additional factors, such as estimated taxes, state taxes, and Medicare surtaxes, on alternative equity compensation strategies
- Identify how to develop and recommend strategies to effectively mitigate the impact of taxes and other factors on alternative equity compensation, optimizing outcomes for both employees and employers
Level
Advanced
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Prior knowledge of Equity Compensation
Advance Preparation
None
