Equity Management for a Global Workforce

Challenge of Managing Global Equity

In today’s business world, it’s common for companies to offer equity as part of their workforce compensation.

Equity plans are simple to execute in the company’s local country but can be enormously complex to manage globally.

Potential challenge that may require help from a third party:

Each country has its own tax laws, securities regulations, labor laws, and accounting codifications (GAAP). To be compliant, you need a tax expert and legal advisor for every country.

Papaya removes global boundaries with our end-to-end global equity management solution in over 100 countries.

From plan assessment and management to ongoing tax calculations, through execution, Papaya administers the whole global program.

GDPR + Information Management

Why Global Equity is so Complicated

Every country has its own reporting schedule, tax rate, and timetable for tax withholding. Some countries require registering with the local securities commission or the central bank. Mishandling the reporting requirements could result in severe penalties.

Every type of equities plan has its own tax ramifications and legal considerations:

Stock options (ESOP) become taxable only if they are exercised. When they are sold, they incur capital gains tax.

Restricted Stock Units (RSU) are taxable when they vest, without any action from the employee. The taxes are usually taken out in the form of stock shares at the time of vesting, but employees can file to pay them at the time of the offer if they believe the stock value will rise.

Employee Stock Purchase Plans (ESPP) offer discounts on stock shares administered through salary deductions. The plan has a preferable tax rate, but only for qualifying programs. Qualifications vary from country to country. This could be complicated by labor laws in some countries where limits are placed on salary deductions.

The variables are endless.

GDRP + Data Collection

Making Global Equity Simple

Papaya’s global equity management is designed to make global equity management as simple as possible.

We analyze your plan by country, highlight compliance gaps, and recommend corrective action. We track global regulation or tax law changes to make sure you are always compliant.

Our solution supports every type of equity plan (e.g. RSU, ESOP, ESPP) and all types of employment (payroll, employer of record, and contractors).

You can apply your plan to all or some of your employees, create incentives for top executives, or even reward your best consultants with company equity. If you are working with an EoR, Papaya coordinates between your company and the EoR to deliver the equity plan.

Whether you are offering options, restricted stock, or performance shares, Papaya manages the entire global equity life-cycle, bringing all of the global expertise and administration necessary.

GDPR + Transparency

The Papaya Advantage

Offering equity to global employees used to be prohibitively complicated and expensive. With Papaya’s Global Equity Management solution, it is now simple and affordable.

Removing all global boundaries, that’s the Papaya Advantage.

GDPR + Employer Rights

See how you can globalize your equity plans

Globalize Your Equity Plans

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