Automated Tender Voting System for Employee Stock Plans
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Solution Overview
Problem
Current systems lack an efficient and streamlined method for facilitating corporate actions such as tender offers and Dutch auction tenders, particularly for employees holding shares through 401K and ESOP plans, in terms of voting processes and reporting mechanisms.
Innovation Solution
A computer-implemented method and system that generates a Tender control number for employees to submit votes, allowing them to choose from tender offer types, automatically calculates voting shares, and dynamically outputs voting progress reports, while ensuring compliance with pre-determined rules and security measures.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a fixed price tender offer is used, then the offer is simple to structure, but it lacks flexibility for employees to choose their tender price
Solution Approach 1:
The system dynamically adjusts the tender offer structure by allowing employees to select from multiple pricing options (fixed price or Dutch auction) and enables real-time price discovery through the Dutch auction mechanism where prices are adjusted based on employee responses until equilibrium is reached
Solution Approach 2:
The system changes the price parameter from a single fixed value to a range of possible values, allowing employees to express their willingness to tender at different price points. The Dutch auction mechanism iteratively adjusts the price parameter based on aggregate employee responses
2Productivity
If manual processing of tender votes is used, then the system is simple to implement, but it is time-consuming and prone to errors
Solution Approach 1:
The system replaces manual mechanical processing of tender votes with an automated computer-based system that electronically receives, validates, and processes employee tender indications, eliminating manual intervention and significantly increasing processing speed and accuracy
Solution Approach 2:
The system enables employees to self-submit their tender indications directly through the automated platform, with the system automatically matching tenders to available shares and calculating outcomes without requiring manual intervention from administrators
3Loss of information
If comprehensive reporting of tender progress is provided, then transparency is improved, but the complexity of reporting mechanisms increases
Solution Approach 1:
The system implements continuous feedback by automatically generating and distributing reports that show tender progress, acceptance rates, and pricing information to relevant parties, enabling real-time monitoring and decision-making without requiring complex manual reporting processes
Data Source
AI summary
In some embodiments, the instant invention provides a programmed system having a computer programmed with software instructions that include at least: code to receive an electronic Tender voting request to conduct a Tender voting; where the Tender voting is limited to a plurality of employees who has owned shares of an issuer at a record date via at least one of: i) at least one 401K plan, and ii) at least one employee stock ownership plan (ESOP); where the Tender voting is selected from the group of Tender voting types consisting of: i) a Tender offer, ii) an All-or-None Tender offer, and iii) a Dutch Tender auction; code to identify the plurality of employees; code to generate a plurality of programmed visual computer screens to allow the plurality of employees to submit Tender votes; and code to dynamically output a report identifying a progress of the Tender voting.