Top 5 Performance Award Accounting Concepts for Compensation Professionals to Know

When it comes to designing and granting equity awards, today’s compensation and executive compensation professionals need to be well versed in a variety of matters. Market practices and trends, business strategy, and participant viewpoints are just the basics. To these, add individual tax rules, company tax rules, securities laws, and more.

But accounting for equity compensation remains a black box for many. With good reason—it can be a tricky endeavor, even for accountants who specialize in it. The good news is that most of the confusion that we hear from compensation professionals stems from the same handful of concepts. In this issue brief, we break each one down in plain English.