Case Study: a major food manufacturing holding company preserves equity value during a spinoff with Conduent Human Resource Services

Major Food Manufacturing Holding Company avoids equity award value loss with Conduent

The vendor Conduent Human Resource Services provided its Career Solutions to a major food manufacturing holding company. The client faced a challenge during a corporate spinoff, needing to convert several equity compensation plans for employees moving to a new company and those remaining, all without any employee losing value in their awards.

Conduent developed an insightful solution using advanced analytics to create conversion formulas for different groups of employees and various award tranches, ensuring full compliance with tax and securities laws. The result was a smooth transition where no employee lost any value or incurred tax penalties. The client response was very favorable, and both resulting companies continue to work with Conduent.