Since 2009, performance-based equity has surpassed all other equity vehicles as the compensation vehicle of choice. Sixty-one percent of Restricted Share Units (RSUs) granted in 2011 had performance metrics attached to the vesting schedule; only 39% had service-based (i.e. time-based) vesting. Forty-three percent of Restricted Shares (RS) granted had performance metrics attached to the vesting schedule.
An increased focus on changing legislation, including global audit activity, is creating challenges for stock plan administrators, PwC concluded. While the most challenging aspect of offering equity remains compliance (over 70%), the most significant jumps were in communications, which increased from 31% in 2009 to 48% in 2011, and cross-country coordination, which increased from 30% in 2009 to 46% in 2011.
PwC contends that as participants focus on navigating through a diverse and often disparate, global tax landscape, it is not surprising there is complexity where tax efficiency and ease of administration diverge. In this respect, the most challenging tax compliance countries have proven to be China (approximately 45%), UK (33%), U.S. (30%), France (30%), India (15%), and Australia (15%).
One hundred fort-seven multinational companies in 17 countries participated in the survey. Click here to view the full survey results.
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