Now that we are one month into 2012 please be aware that our main goal this year is to help you to drive more business. So these monthly new briefs will contain a variety of ideas & resources to help you to engage employees with equity compensation and to provide them with prudent advice.

  • If you are considering offering employee workshops on equity compensation please let me know and we’ll setup a conference call to discuss your plans and how we can help. In the meantime you can review the Blog Posting on this topic. It cites statistics from the 2011 Stock Plan Administration Survey indicating that plan sponsoring companies need to do more to help participants to understand their equity compensation. This posting also includes a set of workshop slides containing the “Myths and Realities” of equity compensation. This presentation is specifically designed for advisors and companies who use to create participant Equity Compensation Benefit Statements.
  • If you are the “Main” or “Billing” contact for your account you will sent your monthly statement on the first of February. This report contains your account balance, number of active participants, number of participants renewing in February and the cost of these renewals. This report also explains how to add value to your account
  • We recently posted the following technical white papers to our blog: Black Scholes Value and Employee Stock Options Part 1, Black Scholes Value and ESOs Part 2 and Black Scholes v. Binomial Lattice for ESO Valuation. These papers will give you a greater understanding of how we use these forumlas in to provide ESO recipients with guidance.
  • Tip: Be sure to assign an annual value to the assistance you provide executives using Even if you don’t charge separately for this service it is wise to tell the client or prospect what it is worth. Many advisors we work with charge between $1,000 and $2,500 per client per year for equity compensation assistance (e.g. quarterly reports, review sessions and decision criteria monitoring). It is OK to waive the fees on this service, but do not dismiss the value.

As always, we sincerely appreciate your business, support and referrals. We are committed to helping you grow your business by attracting and serving stock plan participants more effectively. Please do not hesitate to reach out if we can be of any assistance.

Bill Dillhoefer
Net Worth Strategies, Inc.

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