Many stock plan administrators have wished they had a book to guide them through the practical ins and outs of their job as they learned it and to serve as a reference later. There was no such book until this was released in 2005. Written by Amy Yamashiro, a Certified Equity Professional who began as an in-house stock administrator and now provides consulting services in stock plan administration, The Stock Administration Book is a detailed guide that covers everything from the administrator's role in the company to checklists and step-by-step instructions on handling important tasks. A wealth of templates (included in electronic form) provides administrators with a head start on tackling the many tasks they face, and an encyclopedic glossary—a "glossapedia"—defines and discusses a multitude of terms and issues that administrators and other stock professionals encounter. (Note: This book covers stock options, stock purchase plans, and the like, not retirement plans such as ESOPs.)
Please note: This book was released in October 2005, and some of the material is now out of date; you may find much that is useful, but you cannot assume any particular statement is still current. With this caveat, we have made it available as an ebook at half the original price. It is provided as a zipped file containing a PDF of the text, plus the files originally provided on CD when it was a print book.
Table of Contents
Chapter 1: The Big Picture
Chapter 2: Numbers and Formulas
Chapter 3: Plan & Activity Details
Chapter 4: Section 16
Chapter 5: Contacts & Meetings
Chapter 6: Regular Updates
Chapter 7: Glossapedia
From Chapter 3, "Plan & Activity Details"
Keeping track of what's going on with your plans is basically what you're there for. Even if
you've got great systems in place, take a look through these to see if anything might be useful.
Remember to change templates as needed to fit your plan!
To start, "Corporate Information" covers the information that governs the activity you're tracking.
Keeping this with photocopies of all relevant source documents helps you and your department
put your finger on key details whenever you need them—without having to wait for someone
else to provide them to you first.
For your equity compensation planning, "Stock Plan Basics" helps you create a quick reference
guide to the basic details of your stock plan. Then, "Nonqualified Compensatory Stock Options,"
"Incentive Stock Options," "Restricted Stock," "Restricted Stock Units," and "Stock Appreciation
Rights" all provide you with overview information and key tax, accounting, and
regulatory topics pertaining to each type of equity award for both the recipient and the employer
If you have an ESPP, "Employee Stock Purchase Plan Basics" helps you create a quick reference
guide to its basic details. "Qualified Employee Stock Purchase Plans" covers the basic requirements
for qualification under a 423 Plan ESPP as well as key tax, accounting, and regulatory
topics for both the optionee and the employer corporation, and "Employee Stock Purchase
Plans" covers the same optionee and employer corporation points for nonqualified ESPPs. And
then, "ESPP Offering Period Specifics" helps you track basic details of each offering period.
"Basic Stock Pool Tracking" offers a basic method of simple tracking if you track manually (with
or without a stock tracking software program in place). "Stock Pool Tracking- Details" and "Stock
Pool Tracking—Summary" are more complex excel spreadsheets on the CD in the back of this
book with formulas in place for both detail and summary tracking.
Once all these equity awards have been granted, people will probably eventually want to become
shareholders. "Award Purchase Financing" provides some basics on the handling of different
methods of payment for equity compensation. And "In-House Equity Activity Checklist for
Paper Tracking" is just what it says—a way for you to make sure all the pieces of an exercise or
sale have been processed.
And once you have shareholders, you'll need to maintain a stock register that tracks all of the
shares of each class of stock, as well as a shareholder listing that gives cumulative totals of beneficial
ownership of all classes of stock. Public companies might not maintain a spreadsheet inhouse
for this purpose, preferring instead to canvass brokers to compile lists electronically
when needed. Private companies, however, don't have a whole lot of trading activity in their
stock yet, and maintain pretty tight control over the share issuance process. "Shareholder Equity" and "Stock Tracking" are excel spreadsheets on the CD in the back of this book with formulas in
place for those of you who track shares in-house.