End-to-End Financial Reporting for Equity Compensation

Equity compensation accounting and reporting are inherently complex. Compliance and management reporting demands collide with software limitations, forcing staff to close the gap via manual, spreadsheet-based processes that are time-intensive and error prone. On top of that, the rules can be highly nuanced, requiring special expertise that many companies find impractical to maintain in-house.


Equity Methods helps companies transform stock-based compensation reporting into a center of excellence. We tailor reports and the processes that produce them to your specific award type, compliance objectives, reporting requirements, and systems. There’s also the option to enhance compliance and management reporting services with any of our valuation or HR advisory competencies.

Managed processes may include the following:

Expense amortization for all award types and circumstances

  • Every award type – from multi-tranche performance conditions to dual market and performance award grants, we handle it all
  • All types of modification situations, including target resetting, acquisitions, spinouts, and option repricings
  • Detailed flux analyses with narrative explanations and drill-down capabilities
  • Automated journal entry upload reports to streamline booking
  • Support for cost center, business unit, and geographical posting and tracking objectives

Best-in-class forecasting, budgeting, and variance analysis

  • Build-out and updating of multi-period waterfall forecasts of compensation expense, earnings per share, and tax settlements
  • Automated variance analyses tracing the sources of budget-to-actual discrepancies
  • Multiple approaches for setting up hypothetical future grants in order to reduce forecast variances and enhance precision

Basic and diluted earnings per share calculations

  • Unique requirements associated with complex award structures
  • Participating securities
  • Dilutive impact of dividend equivalents

Comprehensive deferred tax tracking

  • Build-up and unwinding of deferred tax asset (DTA) and any deferred tax liabilities (DTLs)
  • Balance sheet proof reports of cumulative DTA
  • Application of multiple tax rates and DTA true-ups as tax rates change
  • Full support for mobility and flow-through deferred tax impact
  • Synchronization with international recharge reports

Financial disclosure

  • Detailed and summary 10K and 10Q disclosure tables and backup
  • Period lock throughout all reporting areas, including identification of post-dated transactions
  • Proxy information, including supplemental pay-for-performance analytics

IFRS 2 reporting

  • Expense and/or tax reporting under IFRS
  • Disclosure reports tracking “transfers in” and “transfers out”

Fungible share tracking

  • Technology-driven analytics and reporting
  • Customized algorithm development based on specific fungible share provisions

Flexible and insightful management reporting

  • Customized dashboard reports containing forecast, period expense, and variance analysis information all in one place
  • Direct tracing of expense to cost center, business unit, P&L segment, or any other unit of measurement
  • Business unit reports for distribution to local controllers, including reconciliations for employees affected by cost center or geographic mobility
  • All forms of mobility tracking and management
  • Plus, much more—we delight in the fact that management reporting is whatever our clients need it to be in order to derive greater insight and make better decisions

Improve your ability to respond to ad-hoc requests, meet compliance needs, and make time for strategic planning.