Zurich, 21 December 2015
There are many occasions for companies to grant financial rewards to employees, be it to share financial success in the form of bonus payments or to show appreciation for exceptional contributions. Depending on location, role and rank of an employee, the monetary sum they have been awarded can translate into cash payments, restricted company shares, other types of financial instruments, or a combination thereof. To automate this allocation process across complex organisations, Equatex has introduced the New Awards module as an integrated part of its EquatePlus compensation plan administration platform.
Rule-based award allocation
The New Awards module converts the monetary amount of any compensation award granted to an employee into the appropriate types of compensation instruments, which will then be added to the employee’s compensation plan account on EquatePlus. The conversion follows a predefined, custom set of rules based on the company’s compensation policies as well as local regulations and tax considerations.
More speed, fewer errors
By allocating new compensation awards in a fully automated manner, and by integrating the corresponding business logic into EquatePlus, the New Awards module speeds up the allocation process while reducing the risk of errors. It renders the allocation of compensation awards more reliable, ensures compliance with local regulations, and adds additional security through standardised approval processes. Thanks to the built-in reporting capabilities, the allocation of new compensation awards can be easily tracked, and when connected to the EquatePlus trading module, triggers to create buying orders for hedging shares will be automatically set.
EquatePlus product manager Alexandre Pradas said: “The allocation of compensation awards is a prime example for a business process that usually still gets done with the help of spread sheets. The New Awards module eliminates a potential source of error and, at the same time, makes the administration of compensation plans a lot more efficient for our clients. It’s another opportunity for us to add client value by making life easier for compensation plan managers.”
Equatex provides international employee and executive compensation plan services for today’s global enterprise, supporting clients with participants across Europe, Asia, Australia and America. With world-class cloud technologies, Equatex enables companies to deliver engaging compensation schemes across borders, languages and currencies. Equatex currently supports around 200 international businesses and their 1.5 million employees, providing customised end-to-end solutions from funding instruments to administration and execution.