Sooner or later, a company that issues equity awards likely will have to modify them in some way.
Maybe an industry-wide shock has put existing performance targets out of reach. Or an acquisition has brought additional earnings that would yield a windfall well beyond the maximum payout. Perhaps the board would like to accelerate a retiring executive’s shares in recognition of years of outstanding service. Whatever the circumstances, each modification is one of a kind—a reflection of the company’s objectives, business model, and overall compensation philosophy.
The soon-to-be-published Modifications and Discretion FAQ offers our take on how efforts to restore broken incentives are shaping up in a coronavirus-battered economy.
Takis Makridis · 7/31/2020
The final installment of our Recession Readiness Webcast Series, this program on May 28 will offer practical approaches to managing this delicate process through the economic storm. · 5/28/2020
Here’s what management teams need to know when weighing potential modifications to outstanding incentive awards—including incentive restoration solutions, implications, and accounting and proxy rules. · 4/22/2020
In this issue brief, we provide a handful of strategies for how to deal with performance awards that aren’t faring well, along with some important governance and reporting implications to consider. · 9/1/2019
Newly updated for 2019, our modifications white paper provides a holistic discussion of the share-based payment accounting model for modifications.
Whether you’re an accountant or a compensation professional, tune in for a webcast that will help you get equity award modifications right.
Here are some of the most common types of modifications and the implications they have for the financial statement and proxy.
ASU 2017-09 is intended to clarify when changes to share-based payment awards must be accounted for as modifications. Does it succeed?
Takis Makridis · 8/30/2017
FASB released an exposure draft on the application of modification accounting guidance under ASC 718. Here’s a summary of the proposed changes.