Modifications, Key Hires & Departures

Anticipate the proxy and accounting outcomes of these highly scrutinized transactions.

Modifications are among the most challenging areas of equity compensation award design, valuation, and accounting under ASC 718 and IFRS 2. Every modification is unique to the company and its situation. The technical aspects are also challenging. Meanwhile, key executive hires and terminations often require special grants (to new hires) or modifications (to departing executives), usually in an extremely compressed timeframe.

As a result, modifications, key hires, and terminations all can cause considerable accounting and proxy surprises.

We help companies understand the different choices and levers available. How might a transaction depart from prior practice? How would it flow through the proxy? How should you account for it? Our models show the potential proxy and accounting (ASC 718) outcomes so you can move forward with confidence.