FAQs - Share-based payments
Here are some of the most frequently asked questions about Share-based payments.
How many of the reporting requirements imposed actually relate to my business?
It depends whether your business is listed. Listed companies are subject to current reporting requirements as laid down in the International Finance Reporting Standards (IFRS) 2.
Do I need a lot of resources to use share-based payments?
With an outsourced solution, all operations are performed and managed by VP. This means your active input is only required whenever a decision is needed or if additional information can only be provided by your company.
Is it important to be able to document the consolidated data down to the individual transaction?
It makes the auditor’s work significantly easier. If a mistake is uncovered, it can quickly be isolated and corrected.
How does the system help maximise the incentive among the beneficiaries via the assigned share-based payment arrangements?
The system includes options to communicate relevant information to the beneficiaries via the email addresses given, as well as place relevant documentation and news in the staff portal.
At the same time, the share-option scheme itself can be customised to provide more frequent, smaller allocations, which will ensure that the beneficiaries have relatively short windows within which to utilise portions of their allocations.
How many resources does redemption require for the business and the participants?
This process is relatively quick, provided information is delivered to the bank in an easily accessible, error- free format. Output from the system will correctly reflect the utilisations performed by the employees and will ensure that these are performed within the frameworks set up at the start of the scheme.
What types of share-based payment schemes can VP Investor Services administer?
VP Investor Services can handle most types of share-based payment schemes, e.g. stock options and phantom stocks.
Our share-based payment schemes are unique. Can VP Investor Services handle them?
The system also makes it possible to apply modifications to the individual schemes, e.g. making corrections for payments of dividends, conditions of utilisation, increasing exercise price and revaluation of existing schemes.
More than 70 different instruments can be handled in the system.
What about corporate taxation when setting up the share-based payment schemes?
The system can also handle corporate taxation when setting up share-based payment schemes in accordance with section 28 or section 7 H of the Danish Tax Assessment Act [ligningsloven].
What share prices are used for valuation and to show whether redemption is beneficial?
Share prices are updated daily for listed companies, so you always have the best information on which to base the fair value. If the business is not listed, an interval and a valuation model are agreed, to be updated by VP during the term of the schemes. |
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| Contact |
| For more information about administration of share-based payments or advice about options, you are welcome to contact us on +45 4358 8888 or email us at sales@vp.dk.
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