With the release of the new pay ratio disclosure rule by the SEC, companies are now required to disclose the ratio of their CEO’s total annual compensation to that of the median employee. But how do companies determine the compensation of the median employee?
In March 2016, the FASB issued their finalized revisions to ASC 718. In this Issue Brief we review the different areas of the revisions and analyze how companies can tackle adoption.
Employee stock purchase plans (ESPPs) have seen a recent uptick in popularity, and the reporting for such plans is receiving a lot more scrutiny from auditors as a result. This Issue Brief explores the reasons behind the increased prevalence of these plans, and explains how ESPP reporting complexities are catching some companies off guard.
In this blog post, we report on our preliminary experience in developing CEO pay ratio calculations since the SEC’s release of the final rule in August 2015. We share some of the surprises we encountered, along with best practices as the FY 2017 go-live date approaches.
Earn-outs are important to many M&A deals because they connect the consideration paid to the future performance of the acquired company. Learn what they are, how they work, and how their valuation implications affect upfront and ongoing accounting.
Today’s compensation committee expects better justification of performance-based grants. To formulate supportable targets and payouts, many organizations are turning to a new technique called “distribution fitting.”
Post-vest holding periods are a way to tighten alignment between executive and shareholder interests. But for every benefit there’s a hidden drawback.
What do best-in-class organizations do differently in their stock compensation accounting? In the first half of 2015, we administered a survey of stock compensation accounting and related best practices to find out.