Presentation to EOA Conference 10 May 2012 Global Equity Plan administration – best practise, common mistakes and current trends

2 The Regulatory Landscape

3 Number of Plans in Operation

4 Participant Numbers By Country

5 Percentage of the Labour Force that Participate

6 UK Participation Numbers Per Plan

7 UK Trends in Plan Types

8 US Current Trends

9 US Option Plans Changes Type of ChangePercentage of Companies Reduce the number of employees receiving options 48% Reduce the total number of options granted 44% Replace some/all options with restricted stock 33% Replace some/all options with performance based stock 19% Replace some/all options with long term cash incentives 13% Replace some/all options with stock appreciation rights5% Replace some/all options with shares1% Other change 8%

10 US ESPP Trends

11 ESPP Trends Type of ChangePercentage of Companies Eliminate the “look-back” feature26% Reduce the discount on stock purchase24% Eliminate the plan entirely17% Other7%

12 Australian Global Plans – Countries Participating in the Plan

13 Australia – The Number of Plans that Companies Operate

14 Employee Plan Types Used in Australia

15 Executive Plan Types - Australia

16 How to Make Your Plan Successful n Determination about global/local focus n Decision about whether shares are important n Translation – is this required n Plan champions n Communication and engagement channels

17 Common Mistakes n Eligibility data n Withholding tax and detailing with it immediately n Management of forfeited shares n Terminations n Taxation – understanding your employees, international assignees

Discussion