SBC Information Uses: Excerpt From our Stock-Based Compensation Best Practices Survey, Third Edition

In this excerpt from Equity Methods’ Stock-Based Compensation Best Practices Survey, Third Edition, we discuss how SBC information is used by senior management, the board, and investors.

Key findings include:

• Senior management and boards maintain a strong, ongoing interest in SBC. They actively review key trends, variances, and drivers on a regular basis, according to 84% of respondents and an even-higher 88% of C-level respondents.
• Leading companies take an expansive view of SBC, treating compliance as table stakes while focusing on operational excellence, gathering multi-dimensional insights, and making informed strategic choices about talent.
• The controllership, HR, financial planning and analysis (FP&A), and tax teams of leading companies closely connect on process improvement as well as new information and decision-making needs.
• Fifty percent of respondents engage directly with investors on reported SBC data. Investors clearly regard SBC as significant, but the way they reflect it in security pricing varies.

If you’d like to access the full survey report, you can request a copy at www.equitymethods.com/SBCSurveyCopy