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.
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.
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.
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.
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.
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.
ASU 2017-09 Brings Partial Clarity to Modification Accounting
ASU 2017-09 is intended to clarify when changes to share-based payment awards must be accounted for as modifications. Does it succeed?
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…
FASB 2016-01: Understanding the Removal of Credit-Specific Value Movement
The portion of value change due to changes in credit risk is now classified in other comprehensive income (OCI). Here’s how this standard affects reporting.
Equity Awards in a Spinoff: Don’t Forget About the Data
Spinoffs remain one of the toughest areas of equity accounting. In this issue brief, we discuss how a proactive approach toward data reduces both risk and downstream accounting problems.