On May 19, 2026, the SEC issued Release No. 33‑11419, proposing a fundamental shift in the public company reporting framework. While the focus of the Release is on capital markets access and filer status simplification, the proposal’s disclosure accommodations
The Compensation Connection
The Compensation Connection, published by Baker McKenzie, focuses on legal and regulatory issues related to employee compensation and equity incentive plans. It covers topics such as global employee share plans, tax and reporting requirements, implementation of fractional shares in equity programs, and updates on proxy voting policies affecting equity plans. The blog also addresses legal considerations for private company tender offers and provides guidance on compensation and employment matters in various jurisdictions, including emerging markets like the Middle East. It serves as a resource for multinational companies navigating complex compensation structures, compliance, and governance in a global context.
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Latest from The Compensation Connection
Updated: Mitigation Strategies for Claims Related to Share-Based Awards
US companies have been granting various forms of share-based awards to employees around the globe for many years, and companies in other countries are increasingly following suit. Because share-based awards are ubiquitous, and for many companies an important part of…
Keys to Tax Compliance When a U.S. Nonresident Director Joins a U.S. Board
By Sinead Kelly
U.S. companies are increasingly electing or appointing non-U.S. tax residents to serve on their boards of directors. When doing so, it is important to understand the U.S. and foreign tax obligations and issues that can arise.
Compensation paid to a director who…
One Big Beautiful Benefit? What Employers Need to Know About Contributing to Trump Accounts
Overview
Under the One Big Beautiful Bill Act (Pub. L. 119‑21), §530A of the Internal Revenue Code (IRC) has introduced Trump accounts—a new, narrowly tailored savings vehicle for children under age 18, generally structured as a modified traditional individual retirement…
China SAFE Requirements for Share-Based Awards
Given the ongoing competition for talent in the People’s Republic of China (PRC), the ability to offer share‑based awards has become an important tool for employers seeking to attract and retain employees in the market.For non‑Chinese companies, the primary challenge…
Key Pensions Developments in the UK for 2026
A number of significant reforms impacting all types of pension arrangements in the United Kingdom are expected between now and 2030, many of which are currently passing through Parliament.
Read our latest alert for an overview of the developments expected to take…
France: Year-End Tax Reporting Obligations for Employee Share Plans (2025 Fiscal Year)
Employer reporting obligations relating to French-qualified awards
For French-qualified1 stock options or BSPCEs2 exercised in 2025 and French-qualified RSU vested in 2025, the French employer must prepare an individual statement with the exercise/vesting data to be provided to the beneficiary no later than March 1,…
Annual Filing & Reporting Requirements for Global Employee Share Plans (2025-2026)
By Aimee Bell & Jeff Bauman
It is almost the end of the calendar year and time for multinational companies to consider the necessary tax and regulatory filings for global share plans triggered by the close of 2025 (or by the end of a local tax…
Beyond Whole Shares: Implementing Fractional Shares in Employee Share Programs
With brokers increasingly able to facilitate equity award transactions involving fractional shares and companies recognizing their value, offering fractional shares under share incentive plans has gained significant traction in recent years.
Integrating fractional shares into employee share incentive plans brings…
ISS’s Benchmark Policy Changes for 2026 will Impact Equity Plan Proposals
As we approach the 2026 proxy season, Institutional Shareholder Services (ISS) has announced a variety of compensation-related updates to its 2026 benchmark proxy voting policies. Among the most notable changes are revisions to the Equity Plan Scorecard (EPSC) used…