Global equity award programs can be costly to the US parent corporation. One strategy to offset some of this expense can be to use recharge arrangements to transfer some of the cost to the local entities that award holders are employed by. This can produce a tax benefit at the local level that would not otherwise be available to the US parent.

To consider if recharge arrangements should be included in your global equity plan, click here to read our recent NASPP blog post.

Author

Jennifer Kirk is a partner in Baker McKenzie’s Employment & Compensation Practice, with a focus on global equity services. Jennifer is a member of the National Association of Stock Plan Professionals and a frequent speaker on global equity plan issues. Prior to re-joining the Firm, Jennifer was Director of Global Equity Management at Alphabet, Inc./Google Inc. for almost 8 years. She previously had been a partner in Baker McKenzie's Global Equity Services group. Jennifer advises multinational companies on all aspects of employee equity plans, including their design, implementation and compliance. She regularly assists public and private companies in offering their employee equity plans around the world. In addition, she counsels clients on the effects of corporate transactions on their equity compensation programs.