Relative Total Shareholder Return (TSR) Award Services

Relative TSR has emerged as a popular award design given the improved line-of-sight and ability to set long-run performance periods on this award. While these performance-based equity compensation programs are attractive for a number of reasons, they can also be the source of considerable surprise within a company. Unlike with stock options, Relative TSR awards can have hundreds, if not thousands, of constantly-changing inputs, so it is important that companies issuing Relative TSR awards understand the key design features and how they affect fair value.

Equity Methods provides clients with the requisite knowledge and tools to maximize the effectiveness of their Relative TSR plans, while managing administrative and communication challenges. We provide a full range of TSR services, from thoughtful analysis at the very beginning of the design process to the quarterly tracking of TSR outcomes once implemented.

Equity Methods delivers value at each stage of the process to help maximize your prospects for success in implementing this powerful but particularly complex award.

Our Relative TSR Award Services include:

  • TSR Design Analytics: we provide various reports and analyses related to the cost and incentive effects of different award designs under consideration
  • Pro Forma Award Valuation: we provide analysis as to the various drivers of cost in an award so you can understand how specific levers are contributing to the overall award fair value
  • Fair Value Measurement: we perform ASC 718-compliance valuations, including comprehensive audit support
  • TSR Tracking: on a quarterly basis, we provide reports illustrating the company‚Äôs current performance relative to peers

Learn more about how Equity Methods can help your company smoothly integrate these cutting-edge award designs into your accounting and plan design procedures.