descriptionIssue Brief Posted on: 6/11/2025

Unraveling TSR Modifier Accounting

Bryce Bergman Nikhil Guruji David Outlaw

Many companies are taking advantage of the benefits of hybrid awards, where TSR metrics and financial performance metrics are intertwined. But accounting for these awards is often confusing. In this issue brief, we discuss the expense amortization process for an award with a TSR modifier, from the calculation of the grant date fair value all the way to the end of the performance period when the final payout is determined.

Download This Issue Brief

Related Content

descriptionIssue Brief

Hybrid Awards: The Next Generation of Performance-Based Equity

Performance awards that combine financial or operational metrics with TSR—commonly known as hybrid awards—continue to gain popularity due to their versatility. In this issue brief, we provide insight into how these awards can be structured, as well as how to make design decisions that reinforce your company’s business strategy.

Read More
mimoWebcast

The Hybrid Award: Bringing Efficiency to LTIPs?

Presented at the WorldatWork 2017 Total Rewards Conference & Exhibition in Washington, D.C., this panel explored the key design considerations of hybrid awards, their benefits and drawbacks, and essential execution tips for rolling out hybrid award designs.

Read More
articlePage

TSR Essentials

Learn about managing total shareholder return (TSR) awards, from design and pre-grant modeling to reporting and post-grant tracking.

Read More
articlePage

End-to-End Financial Reporting

Equity Methods manages ongoing stock compensation reporting, specific to needs for ASC 718, ASC 740, ASC 260, and IFRS 2 compliance and related areas.

Read More