Share-based payments
DOCUMENTED CALCULATIONS to support financial reporting, reliability and ease of administration services, and maximized returns for the employees.
We offer a full-service solution for both the issuer and option holders, involved in share-based payment plans. The customer can choose to outsource all services related to share-based payment plans or seek targeted support, such as for financial reporting.
Custody & Admin – The issuer can outsource administrative work related to share-based payment plans, such as option plans and performance share plans, to Lago. We maintain ownership lists of incentive plans and provide necessary reports and services during the lifetime of the plan, such as allocations and acceptance of the incentives, approval of the incentives, any change in the incentive plan and or in the option holders, and execution of the incentive (subscription or sale).
Execution – The option holders can sell their options to Lago instead of subscribing the shares. We guarantee the best market price for the option holder at the time of sale and the fastest and simplest process from receiving the sale order to transferring the sale proceeds to option holder’s bank account. We also file the transfer tax report on behalf of the option holder and make the transfer tax payment. If the option holder wants to subscribe the shares, we forward the subscriptions and subscription payments to the issuer.
IFRS compliant valuation – We produce high-quality and documented fair value calculations and expense allocation for share-based payment incentive for issuer’s financial reporting in compliance with IFRS. We perform fair value measurement for each share-based payment plan at the start of the plan and, when needed, throughout the entire lifecycle of the plan (grant date fair value, terminations, incremental fair value changes in case of modifications to the program terms). We measure all relevant parameters, such as volatility, expected dividends and risk-free rates, following the best market practices, and document the audit trail of the calculations. Our service produces a tailored and easy-to-read report and expense allocation calculations. Our financial reporting service includes annual and interim reporting, as well as comprehensive assistance in valuing share-based payment plans when adopting IFRS standards for the first time.
Share buyback – We help the issuer in hedging the share-based payment incentive plan. Read more on our share buyback services here.
For more information, please do not hesitate to contact us!
IFRS compliant valuation: Juha Huttunen, juha.huttunen(a)lagokapital.com or +358 10 320 8954
Other share based payments services: Jani Koskell, jani.koskell(a)lagokapital.com or +358 10 320 8955