EQUITY BASED INCENTIVE COMPENSATION PLAN
First Claim
1. A method, implemented by one or more computers, for establishing an equity based incentive compensation plan, comprising:
- receiving, at the one or more computers, a value of an equity security of a company sponsoring an equity based incentive compensation plan for one or more employees of the company, wherein the equity based incentive compensation plan comprises one or more employees (1) receiving an award grant of one or more shares of the security, or interests therein; and
(2) purchasing one or more shares of the security with funds borrowed from a third party lender;
receiving, at the one or more computers, a loan repayment amount, a loan duration, and a loan amount that the third party lender offers for one or more loans made to an employee, or for the benefit of an employee, to purchase the one or more shares of the security, wherein the loan collateral includes in whole or in part, one or more awarded and purchased shares of the security in the equity based incentive compensation plan, and wherein the loan repayment amount less the loan amount comprises interest which reflects the time value of money as well as one or more risk abatement strategies the third party lender may employ based on the lender'"'"'s assessment of the risk relative to the collateral and the duration of the loan; and
establishing, at the one or more computers, the equity based incentive compensation plan by the receipt of the one or more awarded shares and the purchase of the one or more shares using the loan amount to be held directly by or on behalf of the one or more employees.
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Accused Products
Abstract
An equity based incentive compensation plan is established by acquiring shares of an equity security by grant and by purchase using funds loaned by a third party. The risk of the loan may be abated using various strategies including employing a forward contract between the lender and a third party. The amount of the loan repayment amount may reflect the cost to the lender or entering into the forward contract with the third party. The computer system of the invention manages plans including calculating the ratio of a plan'"'"'s loan repayment amount(s) to the value of the plan'"'"'s shares that are collateral of the loan.
43 Citations
28 Claims
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1. A method, implemented by one or more computers, for establishing an equity based incentive compensation plan, comprising:
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receiving, at the one or more computers, a value of an equity security of a company sponsoring an equity based incentive compensation plan for one or more employees of the company, wherein the equity based incentive compensation plan comprises one or more employees (1) receiving an award grant of one or more shares of the security, or interests therein; and
(2) purchasing one or more shares of the security with funds borrowed from a third party lender;receiving, at the one or more computers, a loan repayment amount, a loan duration, and a loan amount that the third party lender offers for one or more loans made to an employee, or for the benefit of an employee, to purchase the one or more shares of the security, wherein the loan collateral includes in whole or in part, one or more awarded and purchased shares of the security in the equity based incentive compensation plan, and wherein the loan repayment amount less the loan amount comprises interest which reflects the time value of money as well as one or more risk abatement strategies the third party lender may employ based on the lender'"'"'s assessment of the risk relative to the collateral and the duration of the loan; and establishing, at the one or more computers, the equity based incentive compensation plan by the receipt of the one or more awarded shares and the purchase of the one or more shares using the loan amount to be held directly by or on behalf of the one or more employees. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A method, implemented by one or more computers, for establishing an equity based incentive compensation plan, comprising:
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receiving, at the one or more computers, a value of an equity security of a company sponsoring an equity based incentive compensation plan for one or more employees of the company, wherein the equity based incentive compensation plan comprises one or more employees (1) receiving an award grant of one or more shares of the security, or interests therein; and
(2) purchasing one or more shares of the security with funds borrowed from a third party lender;receiving, at the one or more computers, a loan repayment amount, a loan duration, and a loan amount that the third party lender offers for one or more loans made to an employee, or for the benefit of an employee, to purchase the one or more shares of the security, wherein the loan collateral includes at least some of the one or more awarded and purchased shares of the security in the equity based incentive compensation plan; establishing, at the one or more computers, the equity based incentive compensation plan by the receipt of the one or more awarded shares and the purchase of the one or more shares using the loan amount to be held directly by or on behalf of the one or more employees; calculating the ratio of at least a portion of the loan repayment amount divided by the value of the collateralized shares; and notifying one or more of the third party lender, the employer, or the employee of the ratio. - View Dependent Claims (13, 14, 15, 16)
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17. A method, implemented by one or more computers, for modeling a hypothetical equity based incentive compensation plan, comprising:
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receiving, at the one or more computers, input comprising; a value of a share of at least one equity security of a company; a number of shares of the at least one equity security to be received from an employer award; an array of hypothetical share values at one or more future points in time; an amount of funds available to purchase shares of the at least one equity security, wherein a portion of the funds include loan funds from one or more loans; a loan duration for each of the one or more loans; and loan repayment amount terms for each of the one or more loans; generating a model of the hypothetical equity based incentive compensation plan using the input, including; calculating the number of shares of the at least one equity security that can be acquired using the amount of funds; calculating the loan repayment amount for each of the one or more loans; and calculating the value of the hypothetical equity based incentive compensation plan at the one or more future points in times, wherein the value comprises the hypothetical share value of the acquired shares less the sum of the loan repayment amount for each of the one or more loans at the one or more future points in time; and displaying the model of the hypothetical equity based incentive compensation plan to an end user including displaying for the one or more points in time; (1) the number of shares that can be acquired using the amount of the funds and the number of shares acquired from the employer award; and (2) the value of the hypothetical equity based incentive compensation plan. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28)
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Specification