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The Employee Ownership 100: America's Largest Majority Employee-Owned Companies
The NCEO has just released the latest version of the Employee Ownership 100, a list of the largest majority employee-owned companies in the U.S. To be on the list, companies must have at least 50% of their stock owned by an ESOP, a stock purchase plan in which most full-time employees can participate, a profit sharing plan or other trust, or some combination of such plans. (National Center for Employee Ownership)

Updated Issue Brief on the State of Employee Ownership
The NCEO has posted excerpts from its updated issue brief on the state of employee ownership in the U.S. This report details the extent and growth of employee ownership through ESOPs, 401(k) plans, stock options, ESPPs, and other vehicles; summarizes the leading research on employee ownership and corporate performance; and discusses current challenges and prospects. (National Center for Employee Ownership)

Updated Issue Brief on the State of Broad-Based Equity Plans
The NCEO has posted excerpts from its newly updated issue brief on the state of broad-based equity plans. It provides an overview of the prevalence of various kinds of broad-based equity plans (stock options, ESPPs, etc.), who is eligible for them, and what impact they have on corporate performance. (National Center for Employee Ownership)

[Guidance Overview] Design Flexibility and Potential Pitfalls in IRS Final Rules for Employee Stock Purchase Plans
Excerpt:"These final rules under I.R.C. ? 423 generally apply to options granted under an ESPP after 2009, and the new reporting rules apply to shares transferred after 2009. This article highlights significant clarifications in the final rules that should be of interest to employers that already maintain, or may be considering establishing, an ESPP."(Groom Law Group)

Employee Ownership Update for March 16, 2010
NCEO Executive Director Corey Rosen discusses the following in the latest Employee Ownership Update: A recent court case and an IRS ruling support ESOP account segregation and rebalancing. A settlement has been reached between the former ESOP participants, the Department of Labor, and the defendants in the long-running Couturier case. The NCEO now has made available its list of companies with ESPPs and other broad-based equity plans. (National Center for Employee Ownership)

ESPP and Other Broad-Based Equity Plan List
Through a painstaking process of checking company Web sites and corporate filings, the NCEO has compiled a list of the largest 1500 U.S. companies, as well as corporate NASPP members, that have broad-based equity plans. Of the 1,821 companies that we researched, we could confirm that 131 offer options to most or all employees, 22 offer other kinds of broad-based equity (of these, six offer options as well), and 498 have employee stock purchase plans (ESPPs). (National Center for Employee Ownership (NCEO))

Employee Ownership Update for March 1, 2010
NCEO Executive Director Corey Rosen discusses the following: The UK's Conservative Party is proposing that employees in any public service organization be able to reorganize as an employee-owned company. The NCEO is preparing data on options, ESPPs, etc., in large public companies. ABC News ran a moving story on a new ESOP at Bob's Red Mill. The FED is sponsoring an essay contest on employee ownership. Dan Janich and Elizabeth Dodge have been appointed to the NCEO board. (National Center for Employee Ownership)

[Guidance Overview] New Rules Effective in 2010 for Employee Stock Purchase Plans
Excerpt:"If the employer arranges for shares purchased under the ESPP to be transferred to a brokerage account established for the participants, the transfer of the legal title of the shares directly to a broker or financial institution is treated as a transfer that triggers the reporting obligations. However, if the employer issues stock certificates to participants upon the exercise of ESPP options, or if shares are registered in the participants'name and the employer holds those shares for participants in book entry form, then the initial transfer of shares does not occur until the participant's subsequent legal transfer of title."(Sherman&Howard L.L.C.)

New edition of Accounting for Equity Compensation
Accounting for equity compensation is one of the most challenging and complex areas of stock plan administration. Written in plain English for non-accountants by leading expert Barbara Baksa, this book is a survival guide for understanding the impact of stock compensation (such as stock options, ESPPs, restricted stock, and SARs) on corporate financial statements. (National Center for Employee Ownership)

Employee Ownership Update for February 1, 2010
NCEO Executive Director Corey Rosen discusses the following (and more): Cooperative Home Care Associates and Staples are examples of employee ownership companies that help low-income employees with matters such as tax returns. The IRS recently issued Notice 2010-6, which establishes a document correction program for nonqualified deferred compensation programs under Internal Revenue Code Section 409A. If it difficult for employees to meet to share ideas regularly, software can help. (National Center for Employee Ownership)

[Guidance Overview] New Rules for ESPPs and Reporting ISO and ESPP Share Transactions
Excerpt:"In response to comments, the final regulations include an exception to the reporting and return requirements for certain nonresident aliens. Neither an information report nor a return is required for employees for whom the employer is not required to file a Form W-2 for certain specified periods."(McGuireWoods LLP)

New edition of Selected Issues in Equity Compensation
The NCEO presents excerpts from the newly released 7th edition of Selected Issues in Equity Compensation, an in-depth discussion of some of the main topics related to stock options, employee stock purchase plans, and other equity compensation plans. (National Center for Employee Ownership (NCEO))

[Guidance Overview] Annual Information Statements and Returns for Incentive Stock Options and Employee Stock Purchase Plans and Other Reporting Requirements
Excerpt:"These statements must include specific information, which is included in our sample ISO statement and our sample ESPP statement. Information statements may either be mailed to the recipient's last known address or, if the recipient has given his or her consent to receive the statement electronically, provided in electronic format."(Orrick, Herrington&Sutcliffe LLP)

[Guidance Overview] February 1, 2010 Deadline and Final Regulations on Return and Information Statement Requirements for ISOs and ESPPs
Excerpt:"This Update summarizes key highlights from the existing and new final regulations and offers practical guidance."(Perkins Coie LLP)

[Guidance Overview] IRS Final Regulations Governing Options Granted Under Employee Stock Purchase Plans (PDF)
Excerpt:"The final regulations are effective as of November 17, 2009, and will apply to any options granted under an ESPP on or after January 1, 2010. Employers may apply these rules retroactively to options grantedprior to January 1, 2010."(Morgan, Lewis&Bockius LLP)

[Guidance Overview] New California Supreme Court Decision Schachter v. Citigroup Upholds Forfeiture Provision in Key Employee Stock Purchase Plan
Excerpt:"The Schachter decision is important in several respects. First, it validates forfeiture provisions in a stock purchase plans similar to provisions of the Citigroup plan. Second, the Court reaffirmed the prospective and bilateral rights of employers and employees to change compensation and other terms of employment. Third, the Court endorsed the principle that employers can enforce conditions to receiving incentive compensation, such as continued employment for a specified time period. Finally, the Court's recognition of contingent future rights as a permissible part of an employer's compensation package may provide some indirect support for the use of clawback provisions in incentive compensation programs."(Cooley Godward Kronish LLP)

2009 Equity Compensation Update now available
The NCEO's 2009 Equity Compensation Update, covering recent developments in the equity compensation field, is now available. It provides 15 hours of continuing education credit for CEP designees. (National Center for Employee Ownership (NCEO))

[Guidance Overview] IRS's Final ESPP Regulations and ESPP and ISO Reporting Requirements
Excerpt:"Observation: Employers should begin to review their stock plan administration so that the required information for 2010 transactions can be captured and reported on Form 3921 and 3922."(PricewaterhouseCoopers LLP)

[Guidance Overview] Final Regulations for Employee Stock Purchase Plans
Excerpt:"Employers that offer their employees an opportunity to purchase company stock under an employee stock purchase plan ('ESPP') (as defined in Section 423 of the Internal Revenue Code of 1986, as amended (the'Code')) should review their ESPPs for compliance with newly released final regulations to ensure that shares issued under the plan remain eligible for favorable tax treatment and to consider the options available for new offerings under the ESPP."(Pillsbury Winthrop Shaw Pittman LLP)

[Guidance Overview] IRS Issues Final Regulations on ESPPs and Reporting Requirements for Statutory Stock Options (PDF)
Excerpt:"In view of the updated ESPP regulations, employers should review their existing plans to ensure that they will continue to qualify as ESPPs, and are designed to maximize opportunities for participation and tax benefits for all eligible employees. To preserve their favorable tax treatment for employees, some plans may have to be amended prior to January 1, 2010. Although employers have another year to prepare for the new reporting requirements, the release of the final regulations suggests that there may not be any further extensions."(Buck Consultants)

[Guidance Overview] IRS's Final Employee Stock Purchase Plan Regulations
Excerpt:"ESPP Requirements -- The final regulations clarify that the plan document requirements may be satisfied by the terms of the plan document or the terms of the offering under the plan. In order for a plan to be considered an ESPP, the plan must provide that options will be granted only to employees of the employer corporation or of its related corporations. In addition, the plan must be approved by the granting corporation's stockholders within 12 months before or after the date the plan is adopted."(Deloitte via BenefitsLink.com)

[Guidance Overview] Two Issues Under Final Regulations Governing Employee Stock Purchase Plans Under Code Sec. 423
Excerpt:"The final regulations set forth the categories of employees that may be excluded from coverage under an ESPP or an offering under the ESPP. The Regs permit multiple offerings under an ESPP with different exclusions applicable to the one or more corporations whose employees participate in the particular offering. Thus, an employer has the ability to make future and overlapping offerings that are more (or less) inclusive than prior offerings under the ESPP."(Michael Melbinger via Winston&Strawn LLP)

[Guidance Overview] New IRS Final Rules on Employee Stock Plans: New Reporting Requirements for ESPPs and ISOs to Begin in 2010
Excerpt:"The new reporting rules apply to an ESPP only if the purchase price is set at a discount from the fair market value of the stock. In addition, the reporting requirement does not apply to the year in which the stock is transferred from the company to the employee, but when the stock is transferred from the employee to a third party. In recognition of the fact that most companies no longer issue certificates to employees who purchase stock through an ESPP, the final regulations provide that the stock will be considered to have been transferred by the employee when the stock is deposited into a brokerage account for the employee's benefit. However, if the company does still issue certificates -- either automatically or upon the employee's request -- the company will need to have its transfer agent monitor when the employee transfers the stock."(Seyfarth Shaw LLP)

[Guidance Overview] New Final ESPP Regulations
Excerpt:"As they promised at NASPP Conference, the IRS and Treasury Department issued final regulations governing Employee Stock Purchase Plans under Code Sec. 423 last week (as if we did not already have enough to do by the end of 2009). Many companies recognize the ESPP as a low-cost opportunity to incentive employees, on a tax-favored basis, by selling them company stock at a slight discount. The good news is that the final regulations made no dramatic changes. However, the Regs do make a few important clarifications (and reject one widely-sought change). The following key issues bear special mention: Determining the Grant Date; Application of the $25,000 limitation; Coverage of Non-US employees; Shareholder Approval."(Michael Melbinger via Winston&Strawn LLP)

[Guidance Overview] IRS's Final Regulations on Employee Stock Purchase Plans
Excerpt:"On November 16, 2009, the IRS released updated regulations governing Employee Stock Purchase Plans. The final regulations give employers more flexibility in meeting the statutory requirements than the proposed regulations (though not as much flexibility as some employers desired). They deserve careful review by all corporations sponsoring Employee Stock Purchase Plans -- before the final regulations become applicable on January 1, 2010."(Sonnenschein Nath&Rosenthal LLP)

[Official Guidance] Text of Final IRS Section 6039 Regs Affecting Information Reporting Requirements for Statutory Stock Options
6 pages. Excerpt:"These final regulations will apply as of January 1, 2007. However, taxpayers are not required to comply with the return requirements of Sec. 1.6039-1(a) and (b) of these final regulations for stock transfers that occur during the 2007, 2008 and 2009 calendar years. Notwithstanding the waiver of the return requirements for 2007, 2008 and 2009 stock transfers, taxpayers must furnish information statements to employees for such stock transfers."(Internal Revenue Service)

[Official Guidance] Text of IRS Final Regs on Options Under Section 423 Employee Stock Purchase Plans (PDF)
14 pages. Excerpt:"Commenters requested clarification of whether options with terms that are inconsistent with the terms of the plan will be eligible for the special tax treatment of section 421. As provided in . . . the proposed regulations, . . . these final regulations [provide] that, if the terms of an option are inconsistent with the terms of the employee stock purchase plan or an offering under the plan, then the option will not be treated as granted under an employee stock purchase plan. However, an option may still qualify for the special tax treatment of section 421, even if the terms of the plan are inconsistent with any of the requirements . . . of these final regulations, if the option is granted under an offering with terms that comply with the requirements of Sec. 1.423-2(a)(3)."(Internal Revenue Service)

IRS Final Employee Stock Purchase Plan Regulations Under Section 423
Excerpt:"The Internal Revenue Service (IRS) has finalized regulations relating to options granted under an employee stock purchase plan as defined in section 423 of the Internal Revenue Code (Code). These final regulations affect certain taxpayers who participate in the transfer of stock pursuant to the exercise of options granted under an employee stock purchase plan. These final regulations provide guidance to assist taxpayers in complying with section 423 in addition to clarifying certain rules regarding options granted under an employee stock purchase plan. The rules are set to be published in the November 17, 2009 Federal Register and will be effective that date. They will apply as of January 1, 2010."(International Foundation of Employee Benefit Plans)

Employee Ownership Update for November 16, 2009
NCEO Executive Director Corey Rosen reports: The United Steelworkers and the Mondragon Corporation agreed to develop U.S. manufacturing companies organized as worker cooperatives with steelworker representation. The ill-fated ESOP at the Tribune Company will be replaced with a 401(k) plan. A survey of employee stock purchase plan (ESPP) participants found they are more interested in the company, work harder, and are less likely to look for a job in the coming year than those not in the plan. (National Center for Employee Ownership)

[Guidance Overview] California Supreme Court Addresses Forfeiture Provisions in Incentive Compensation Agreement
Excerpt:"Last week, the California Supreme Court issued its highly anticipated decision in Schachter v. Citigroup, Inc., unanimously holding that the forfeiture provision contained in Citigroup's stock purchase plan did not violate California Labor Code wage payment requirements. The decision provides helpful guidance to California employers regarding the structuring of incentive compensation plans generally. Moreover, in reaching its holding, the court relied upon a variety of principles helpful to employers that had emerged from earlier cases."(Wilson Sonsini Goodrich&Rosati)

Study Finds ESPPs Motivate Employees
Excerpt:"Recent research by Computershare and the London School of Economics found employees in Employee Stock Purchase Plans (ESPPs) work harder and stay with their employer longer. According to the survey results, employees in the U.S., UK, Australia, and South Africa all said the ESPP had a motivational impact on them. Also, U.S. employees participating in an ESPP said they were more likely to work beyond their contractual hours and to monitor a colleague's work and say something if he or she is not doing a good job. In the U.S., 57% of members of an ESPP work overtime in a given week, versus 41% of non-members."(PLANSPONSOR.com; free registration required)

NCEO provides new data on employee ownership in S&P 900
The NCEO has completed an analysis of employee ownership in the S&P 900 index of large- and mid-cap publicly traded companies. Based on Form 5500 filings, we found 196 of the companies in the index had ESOPs or KSOPs (401(k)-ESOP combinations). Of these, 36 owned 5% or more of the company's outstanding shares. 19 companies had 401(k) plans that owned 5% or more of company shares out of 199 companies that had some company stock in their retirement plans. The data is available for purchase. (National Center for Employee Ownership)

Employee Ownership Update for August 31, 2009
NCEO Executive Director Corey Rosen discusses the Congressional Budget Office's listing of the elimination of ESOP tax benefits as a way to save tax dollars; a new NCEO survey finding that smaller companies have more generous ESPPs and higher participation rates; and lawsuits that examine the class standing issue raised by the Supreme Court's LaRue decision. (National Center for Employee Ownership)

Discounts and Offering Periods Key to ESPP Benefit, According to Survey
Excerpt:"Overall, 65% of the over 400 stock plan administrators in U.S. public companies surveyed said that an Employee Stock Purchase Plan (ESPP) was a beneficial or excellent investment, but if the discount on stock price was 10% or less, only 18% did. . . . The NCEO/CEPI survey, conducted in June and July 2009, includes responses from over 400 companies. With questions written by experts in the field, the resulting data is a unique source for insight into trends in plan design, participation rates, compensation cost, run rates, overall satisfaction with the plan, and more."(PLANSPONSOR.com; free registration required)

The Employee Ownership Update for August 17, 2009
NCEO Executive Director Corey Rosen discusses the ESOP Improvements Act, the results of the NCEO's new survey on employee stock purchase plans (ESPPs), and an important Ninth Circuit decision in the Johnson v. Couturier case concerning the role of ESOP fiduciaries in dealing with executive pay and the ability of companies to indemnify fiduciaries. (The National Center for Employee Ownership)

Employee Ownership Update for April 30, 2009
NCEO Executive Director Corey Rosen discusses the use of company stock at Chrysler and GM; what stories people tell about your company; challenges for employee stock purchase plans (ESPPs) in a down market; and an essay contest at the Carey Center for Democratic Capitalism. (National Center for Employee Ownership)

New Publication on Equity Compensation in a Down Market
The NCEO presents excerpts from its new publication Equity Compensation in a Down Market: Repricing, Accounting, ESPP, and Employee Communications Issues, a 63-page issue brief. (National Center for Employee Ownership)

Issue Brief: The State of Employee Ownership 2009
The NCEO presents excerpts from The State of Employee Ownership 2009, an issue brief that reviews the number of plans, participants, and assets for ESOPs and similar plans, broad-based stock options, 401(k) plans with company stock, and employee stock purchase plans. It also reviews the most relevant research on employee ownership and corporate performance and recent political and legal developments in the field. (National Center for Employee Ownership)

New book: Advanced Topics in Equity Compensation Accounting
The NCEO presents excerpts from its new book, Advanced Topics in Equity Compensation Accounting. The book presents a selective and detailed treatment of some of the most crucial topics in accounting for stock options and other equity compensation plans. The author is noted expert Takis Makridis. (National Center for Employee Ownership)

Court Rules Forfeiture of Incentive Does not Violate State Wage Law
Excerpt:"Massachusetts'Supreme Judicial Court has determined that the forfeiture provision of a Capital Accumulation Plan (CAP) does not violate the state's weekly wage act. According to the court opinion, another statute specifically excludes from coverage under the state weekly wage act'certain types of deductions from wages made by an employer at an employee's request, including, among other things, deductions of amounts used to purchase company stock pursuant to an employee stock purchase plan.'Using this statute, the court determined the forfeiture of the stock purchased at participants'direction in the payroll program of the CAP did not violate the wage act."(PLANSPONSOR.com; free registration required)

[Guidance Overview] Jan. 31 Reporting Requirement Deadline Regarding ISOs and ESPPs
Excerpt:"This is a reminder to public and private companies that grant incentive stock options (ISOs) or maintain a tax-advantaged employee stock purchase plan (ESPP). Section 6039 of the Internal Revenue Code of 1986, as amended requires such companies to provide information statements by January 31, 2009 to each employee who during 2008 either (i) received stock upon the exercise of an incentive stock option or (ii) sold or otherwise transferred legal title to stock acquired under an employee stock purchase plan. Treasury regulations specify the information required to be in each information statement."(Briggs and Morgan)

[Guidance Overview] New Tax Rules Proposed for Employee Stock Purchase Plans
Excerpt:"The Internal Revenue Service and Treasury Department have proposed new regulations for Internal Revenue Code ('Code') Section 423 employee stock purchase plans ('ESPPs'). The proposed regulations are the first comprehensive update of existing ESPP tax rules that have been in effect since the 1960s. In addition, the proposed regulations contain important guidance for employers that maintain or that are considering implementing ESPPs. The proposed regulations are scheduled to become effective on January 1, 2010 but may be relied on for periods prior to that date."(McGuireWoods LLP)

[Guidance Overview] Special Reporting Requirements Regarding Incentive Stock Options and Employee Stock Purchase Plans
Excerpt:"This Alert will serve as a reminder of certain year-end reporting requirements imposed with respect to incentive stock options and employee stock purchase plans and as a notification of changes in future reporting requirements."(Cooley Godward Kronish LLP)

New article on stock options, restricted stock, phantom stock, SARs, and ESPPs
NCEO Executive Director Corey Rosen has written a new article for the NCEO's Web site on stock options, restricted stock, phantom stock, stock appreciation rights, and employee stock purchase plans. (National Center for Employee Ownership)

[Guidance Overview] What to Do with Your Employee Stock Purchase Plan During the Current Financial Crisis
Excerpt:"[T]he dramatic drop in stock prices not only impacts stock options and related executive compensation, but it can severely impact broad-based equity compensation in the form of employee stock purchase plans. It is important that every company with an ESPP analyze its plan and discuss how the consequences of the financial crisis will be handled. If your company is in this situation, you may want to contact an equity compensation expert for advice on how to proceed."(The National Center for Employee Ownership)

What to Do with Your ESPP During the Current Financial Crisis
The impacts of the ongoing financial crisis on stock options and restricted stock units are being documented daily. Some compensation consultants are predicting the end of stock options as a compensation tool, while others are touting the use of mega-grants or option exchange programs. So far we've heard very little about the effect of rapidly dropping stock prices on broad-based employee stock purchase plans (ESPPs). Dan Walter writes about the issues that arise with ESPPs. (National Center for Employee Ownership)

[Official Guidance] IRS Schedules Hearing on Options Issued Under Section 423 Employee Stock Purchase Plans
Excerpt:"The subject of the public hearing is the notice of proposed rulemaking . . . . that was published in the Federal Register on Tuesday, July 29, 2008 . . . . Persons who wish to present oral comments at the hearing that submitted written comments by October 27, 2008, must submit an outline of the topics to be addressed and the amount of time to be denoted to each topic. . . . A period of 10 minutes is allotted to each person . . . ."(Internal Revenue Service)

[Official Guidance] Text of IRS Announcement of Hearing on Proposed Section 6039 Regs for Reporting of Incentive Stock Options, Employee Stock Purchase Plans
Excerpt:"This document provides notice of public hearing on [October 30 on] a notice of proposed rulemaking relating to the return and information statement requirements under section 6039 of the Internal Revenue Code. These regulations reflect changes to section 6039 made by section 403 of the Tax Relief and Health Care Act of 2006. These proposed regulations affect corporations that issue statutory stock options and provide guidance to assist corporations in complying with the return and information statement requirements under section 6039. . . . The IRS must receive outlines of the topics to be discussed at the hearing by October 23, 2008."(Internal Revenue Service)

New edition of Equity-Based Compensation for Multinational Corporations
The NCEO presents excerpts from the new (10th) edition of its book Equity-Based Compensation for Multinational Corporations. (National Center for Employee Ownership)

Presentation on Tax Withholding on Restricted Stock and Unit Transactions
45 pages. An outline of the Agenda of the presentation: Tax Treatment of Restricted Stock and Units; Tax Withholding and Reporting Requirements; Tax Payment Methods; International Considerations; Acceleration of Vesting on Retirement; Dividends; and, Best Practices. (Computershare Limited)

[Guidance Overview] Reporting Requirements for Statutory Stock Options and Updates ESPP Regulations (PDF)
5 pages. Excerpt:"The IRS recently issued two sets of proposed regulations on employee stock plans. The first set addresses IRS return and employee information statement requirements related to statutory stock options, i.e., incentive stock options under Internal Revenue Code Section 422 (ISOs) or employee stock purchase plans under Section 423 (ESPPs). The second set essentially updates previous regulations to provide a comprehensive set of rules for statutory stock options granted under ESPPs, and conforms them, where appropriate, to the regulations for ISOs."(Buck Consultants)

[Official Guidance] Text of IRS 2008-2009 Priority Guidance Plan, Including Reg Projects for Retirement Benefits, Executive Comp, Healthcare and Other Benefits (PDF)
31 pages; dated September 10, 2008. (Internal Revenue Service)

[Guidance Overview] Employee Stock Purchase Plans: IRS Update to Rules and Reporting Requirements (PDF)
4 pages. Excerpt:"In July, the Internal Revenue Service proposed regulations that would provide a comprehensive set of rules governing stock options issued under employee stock purchase plans. Earlier in the month, IRS issued proposed regulations relating to ESPP and incentive stock option (ISO) information reporting requirements. In the [target] article, the authors summarize key changes in both regulatory proposals. [Reproduced with permission from Pension&Benefits Reporter.]"(The Bureau of National Affairs, Inc. via Groom Law Group)

Employee Ownership Update for August 29, 2008
NCEO Executive Director Corey Rosen discusses a study of 328 majority ESOP-owned companies finding that they have sales per employee that are 8.8% greater than comparable non-ESOP companies; a new NCEO issue brief on the state of broad-based employee equity plans; a new IRS analysis finding that the top 47,000 families in the U.S. own $1.196 trillion in public and private corporate equity; and a correction to a prior story on Appleton, Inc. (National Center for Employee Ownership)

NCEO Issues Issue Brief on the Future of Broad-Based Equity Plans
The NCEO presents excerpts from its revised Issue Brief on the Future of Broad-Based Equity Plans, written by NCEO Executive Director Corey Rosen. The issue brief looks at how the markets will react to stock option expensing, how expensing and greater concern about dilution are affecting broad-based equity plans, and the impact of broad-based plans on corporate performance. (National Center for Employee Ownership)

[Official Guidance] Correction to IRS Proposed Regs on Information Reporting of Statuory Stock Options per Code Section 6039 (PDF)
1 page; seems to be insignificant grammar corrections only although one correction eliminates a potentially confusing incorrect statutory reference. (Internal Revenue Service)

[Guidance Overview] IRS Proposes Updated Regulations for Stock Purchase Plans
Excerpt:"The regulations are proposed to apply as of January 1, 2010, and will apply to any option issued under an employee stock purchase plan that is granted on or after that date. However, taxpayers may rely on the proposed regulations for the treatment of any option issued under a plan that is granted after July 29, 2008."(Deloitte)

[Opinion] Follow-up to the'Beware of Beneficiary Provisions'Blog
Excerpt:"In [Ed Burmeister's blog, he] channels Andy Rooney, pointing out all that is wrong and risky about beneficiary designation provisions in stock incentive plans and ESPPs. Speaking as only someone who has been through these headaches a few times can, Ed's article points out [a] few of the pitfalls in allowing employees too much latitude in the designation of beneficiaries, given the variety of state and foreign laws, and argues compellingly for simplicity."(Michael S. Melbinger via Winston&Strawn LLP)

[Guidance Overview] Proposed Regs Provide Guidance on Options Granted Under Employee Stock Purchase Plans
Excerpt:"The IRS has issued proposed regulations, amending existing regulations under Code Sec. 423, which affect those who participate in the transfer of stock pursuant to the exercise of options granted under an employee stock purchase plan. Such options, under Code Sec. 423, and incentive stock options, under Code Sec. 422, are collectively called statutory options."(Wolters Kluwer)

[Guidance Overview] New Proposed Regulation for Employee Stock Purchase Plans Under Code Sec. 423
Excerpt:"It is hard to get too excited about these proposed regulations since (i) the existing final regulations on Sec. 423 were last updated in 2004, and (ii) their effective date, upon publication as final regulations in the Federal Register, will be January 1, 2010. However, the proposed regs do provide helpful guidance in a few areas, including three of the areas where we see the most confusion among companies . . . ."(Michael S. Melbinger via Winston&Strawn LLP)