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Compliance Leader CCH Eases Stock Plan Administration
(RIVERWOODS, ILL., June 22, 2001) Human resource professionals in
publicly-traded businesses realize that stock options and stock purchase plans are
essential elements in their companies compensation systems, but they also know, all
too well, that keeping track of the many bits of plan-related information needed by their
own organizations, regulators and participants can be a heavy administrative burden.
To help those who administer option and stock purchase plans do their jobs more quickly
and accurately, CCH INCORPORATED (CCH), a leading provider of human resources information
and compliance tools, has developed powerful new software SEC Compliance
Desktop: Stock Options and SEC Compliance Desktop: Employee Stock Purchase Plans
that helps assure accurate plan administration with a minimum of effort.
The Stock Options module makes it easy for administrators to create multiple
plans with multiple grant types, multiple vesting schedules, exercise types and
dispositions. Several valuation models are built into the module. Tax rates can be entered
for each participant, and taxes are automatically calculated.
Similarly, with the Employee Stock Purchase Plans (ESPP) module,
administrators can easily create and administer multiple plans of differing offering
The system recognizes the $100,000 ISO limitation when adding new grants or editing
existing ones. It also tracks the $25,000 limit in ESPPs, even when a participant is
concurrently enrolled in multiple plans.
To satisfy a variety of internal and external clients, the modules can produce over 100
distinct reports, including information for participants, internal reports for treasury
and human resources, broker and transfer agent correspondence, tax, proxy, FAS 123 and
A module security feature allows the administrator to control levels of user access to
individual modules. This gives the organization the ability to spread the different
functions of the administration across different users or even across different
In addition, the Stock Option and ESPP modules:
- Provide an intuitive data entry process that is easy to learn and use.
- Limit access to authorized users through built-in security features.
- Automatically flow required Section 16 information to Forms 3, 4 and 5 (if separate
Section 16 module is purchased.)
- Accommodate all types of exercises, including cash, same-day sales, stock swaps and
- Accommodate the creation and calculation of virtually any type of vesting schedule,
including vesting for restricted stock.
- Provide global automatic grant repricing with an "undo" feature to
permit easy error correction.
- Automatically perform all transactions relating to termination, including reversal of
termination transactions if needed.
- Allow designation of a captive broker.
- Store subsidiary information as well as eight additional classification fields and
permit filtering by them.
- Store actual and forecasted dividend amounts.
- Report dividends due on restricted stock.
- Protect against "effective repricings."
- Permit creation of hypothetical, "what if" transactions, including multiple
- Track restricted stock issued from exercise of unvested options and project release from
Features Save Time, Ensure Accuracy
The software becomes "smarter" the more it is usedonce a piece of
information is entered, it doesnt have to be entered again when a new plan or
transaction has to be recorded. Instead, the data already in the system is called up
instantly and entered on new reporting forms. There are also picklists designed into the
system wherever possible to speed data entry whenever possible, and provide extensive
error-checking to minimize the possibility of an incorrect entry.
The modules also are designed to accommodate a maximum of flexibility in administering
plans, while at the same time eliminating unnecessary, duplicative effort. The system,
which is extremely adaptable and powerful, minimizes drudgery but ensures accurate
administration that complies with legal requirements and makes it easy to provide useful
information about plans to many interested parties inside and outside of the company.
The new modules are the most recent addition to CCHs SEC Compliance Desktop.
The SEC Desktop modules readily import spreadsheet or payroll data. A
spreadsheet-style display facilitates data manipulation during the import process.
The SEC Compliance Desktop runs under Microsoft Windows 95, 98 or NT on a
Pentium 166 or better microprocessor and 32-bit technology for optimal performance.
The program requires 28 MB of free disk space exclusive of data files, a CD-ROM
compatible with MSCDEX and SVGA monitor or better.
Availability and Pricing
Modules are priced individually to allow maximum flexibility and discounts apply when
multiple modules are purchased. In addition to an online tutorial and extensive,
context-sensitive help, the subscription price includes on-site or telephone training, all
customer service calls and all updates. For complete pricing information, contact
your CCH Sales Representative at 888 CCH REPS (1-888-224-7377) or visit http://business.cch.com.
About CCH INCORPORATED
CCH INCORPORATED, founded in 1913, has served four generations of business
professionals and their clients. The company produces approximately 700 print and
electronic products for securities, tax, legal, banking, securities, human resources,
health care and small business markets. CCH is a wholly owned subsidiary of Wolters Kluwer
North America. The CCH web site can be accessed at www.cch.com. The CCH Health and Human Resources group web site can be
accessed at http://hr.cch.com.
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