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Blog Post

What You Need to Know About the September 2017 SEC Pay Ratio Guidance

On September 21, 2017, the SEC released additional pay ratio guidance. The new guidance primarily reiterates and clarifies flexibility that the rule already allowed, with one substantial update. In this blog post, we go over the highlights of the interpretive guidance and updates to the Compliance and Disclosure Interpretations, and we discuss the ideas posed in the Department of Corporate Finance guidance regarding statistical sampling.

Issue Brief

Compensation Moneyball Part III: Making Use of Analyst Data

In this sequel to “Compensation Moneyball, Part II: The Simulation of Performance Targets,” we incorporate analyst expectations into the performance award goal setting process.

Issue 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.

Blog Post

Issuing Equity Abroad: Top Tax Challenges of International Subsidiaries

Foreign subsidiaries of US-listed companies have a host of IFRS and local tax reporting obligations that often fly under the radar. We recently spent time abroad unpacking some of these issues and their implications for both the consolidated financials and local tax compliance.

Blog Post

Setting Executive Performance Goals in a Rapidly Changing Environment

The most common performance award term is three years, but that doesn’t mean it’s right for all companies. In this blog post we review some of the pros and cons of the various performance award terms.

Blog Post

Fortune 500 Sees First Signs of Tax Volatility from ASU 2016-09

Over the summer, we spoke with Bloomberg about their study of the aftermath of Accounting Standards Update 2016-09 (ASU 2016-09). Here’s a summary and a link to their article.

Blog Post

Ten Things to Remember About Non-GAAP Metrics in Incentive Design

We recently spoke with Reuters about the role of non-GAAP adjustments in incentive plan design, which has grown in controversy in the wake of the SEC’s May 2016 CDIs. Here’s a link to the Reuters article and the 10 considerations we suggest keeping in mind as this topic remains sensitive.

Blog Post

ASU 2017-09 Brings Partial Clarity to Modification Accounting

On May 10, Bloomberg BNA asked Takis Makridis about some new guidance that the Financial Accounting Standards Board (FASB) had just issued. The guidance, Accounting Standards Update No. 2017-09 (ASU 2017-09), is intended to clarify when changes to share-based payment awards must be accounted for as modifications. Does ASU 2017-09 succeed?

Blog Post

Equilar Executive Compensation Summit 2017 Conference Roundup

Equity Methods was part of the Equilar Executive Compensation Summit in Chicago from June 12 to 14. We helped lead three of the sessions, and heard from a host of…

Blog Post

FASB 2016-01: Understanding the Removal of Credit-Specific Value Movement

According to revised guidance issued by the FASB, the portion of value change due to changes in credit risk will now be classified in other comprehensive income (OCI). This blog post will help you to understand how this new standard will affect reporting.