Stock Option Tracking & Administration
Colonial offers a fully secure web-based solution for managing and accounting for stock based compensation. Colonial’s stock option tracking platform tracks all activities related to employee stock options and all other types of equity instruments in real time for publicly traded and private companies. This product is not included in Colonial's typical transfer agent services, but is an additional solution offered to help executives manage their stock.
Log in: Colonial's stock option tracking program uses a single-sign-on system, which enables multiple individuals to access data from the program simultaneously and in real-time. The data being accessed will depend on the user role, which could be an administrator, an HR manager, an auditor, a broker, or an employee. In addition, Colonial's stock option tracking program keeps track of the complete access logs for different roles, and provides extensive security features for user authorization and authentication.
Security: Colonial's stock option tracking program’s network connectivity is encrypted using 128-bit data encryption, and there is a firewall existing between the production environment and the public domain. Access to data and application is restricted based on user roles, and audit trails are enabled for the different roles. In addition, all employees of Colonial's stock option tracking program have signed the non-disclosure agreement and the privacy agreement.
Backup and Recovery: Colonial's stock option tracking program application is backed-up on a daily basis, and a comprehensive backup strategy is in place to protect client data against computer equipment failures. Moreover, the backup media is stored in an off-site location.
Implementation: Colonial's stock option tracking program ensures that the raw data for all the clients is kept in a secure place and is backed-up regularly. Once the data is received, it is thoroughly analyzed, and upon the completion of loading the data, the totals are reconciled against the totals in the raw data.
Support: Colonial's stock option tracking program has a highly professional support team dedicated to the queries and needs of our clients. The support phone number and email address are listed to the right.
Colonial's stock option tracking program can perform all the functions associated with the accounting, management and administration of employee stock options including, but not limited to:
- Automatic loading of stock prices and interest rates
- Automatic calculation of the volatility
- Automatic calculation of the Black Scholes and the Binomial valuation Values
- Full support for options, restricted shares, convertible debentures, warrants, performance options, SAR's, Deferred Share Units, consultant options and Phantom Shares
- Full support for both uniform and non-uniform vesting schedules
- Full support for evergreen plan calculations
- Automatic generation of all the disclosures needed for the quarterly and annual disclosures
- Automatic generation of grant letters and employee option status letters
- Support for downloading all the data into Excel
- Full Support for the detailed diluted number of share calculations based on the Treasury Method
- Full support for all types of corporate actions
- Full support for all types of vesting and expense acceleration and deceleration
- Full support for changes in strike prices
- As a web-based application, you can get your employees to have direct access to the system where they would be able to see the status of their own options, and to enter their requests for exercising the options. Many companies consider this as an employee benefit.
- A fully web-based application which would allow you as many users as you want to access the system.
- Full support for managing your capital summary on-line.
- Full journal entries and the justification for them.
- Calculations for the expected term of the options based on historical data.
- Calculations for the forfeiture rates based on historical data.
- Management and accounting for performance options.
- The true-up and true-down adjustments associated with changing the forfeiture rates on a periodic basis.
- Management and accounting for variable accounting grants (such as liability-type instruments and consultant options)
- Automatic true-up and true-down adjustments associated with changing the performance criteria of performance options.
- The true-up adjustments associated with changing the terms of existing options.
The administrators can log onto the program at any time from anywhere to access and make change to their data from a web browser. It keeps track of stock grants, exercises, and forfeitures/cancellations. Also it keeps track of employee types, department blackouts, and calendar settings.
Colonial's stock option tracking program provides both valuation and expensing methods that fully comply with the guidelines of CICA 3870 and FAS123(R).
For U.S. Reporters, Colonial's stock option tracking program provides FAS123(R) compliant expense values, notes and proxy disclosures, and FAS128 compliant share dilution report.
For International reporters, Colonial's stock option tracking program provides IFRS-2 compliant option expense, reporting and disclosures, and IAS-33 compliant share dilution report.
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