Plan administration becomes an important responsibility once the plan is implemented. The policies and procedures of stock plan administration vary from company to company, depending upon, among other things, the company's culture and the size and scope of the stock plan. Regardless, the core areas of responsibility for any stock plan administrator generally boil down to:

1. Administering plan transactions, and
2. Managing the flow of information related to the plan and plan transactions.

The choices will be either to keep administration in-house, which requires computerization and personnel, or to outsource it. Either way, good record keeping is essential. If you decide to administer the plan internally, you should be advised that there are several good software programs that can be purchased to help you with this task.

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