If your company grants relative TSR awards, you know that an ASC 718-compliant valuation using the right data and sophisticated Monte Carlo models is essential to a smooth year-end audit. But financial statement valuations are just one small piece of the relative TSR valuation puzzle. Pre-grant modeling of estimated award cost and post-grant tracking of actual performance multipliers are just as important as the formal valuation done for financial reporting purposes, and can be critical to ensuring the overall success of your relative TSR award program.
Whether your firm is just starting to grant relative TSR awards or has a lengthy TSR grant history, your valuation needs start well before the grant date and continue long after the awards appear in your financial statements. That’s why we offer a comprehensive suite of best-in-class TSR valuation solutions for pre-grant modeling, post-grant tracking, and everything in between.
Equity Methods supports your goals throughout the compensation cycle.
TSR Design Analytics. We partner with you and your compensation consultant to provide cost estimates, sensitivity analyses, and both retrospective and forward-looking calculations so that you have actionable information about competing award designs for comp committee and senior management meetings.
Pro Forma Award Valuation. Once a design has been selected, we perform interim valuations before the grant date that help you monitor the impact of market fluctuations on the grant so that you have the information you need to update your executive participants and other stakeholders. The end result: clear expectations and no surprises.
Formal Award Valuation and Audit Support. We perform ASC 718-compliant grant date valuations for your audited financial statements and support you and your team during the external audit process. Our in-house expertise spans both valuation and accounting, giving us a holistic perspective on ASC 718-related issues.
Ongoing TSR Performance Tracking. After the grant, our customized, web-based service, AwardTraq, offers real-time, post-grant tracking of your TSR awards to facilitate participant communication and ASC 260 calculations.
To learn more about how Equity Methods can assist you throughout the compensation cycle, please contact Nathan O’Connor, EVP and Director of Valuation Services, at 480-428-1205.