A Crash Course on Earnouts
Earnouts are important to many M&A deals because they connect the consideration paid to the future performance of the acquired company. Learn what they are, how they work, and how their valuation implications affect upfront and ongoing accounting.
What Is a Stock Warrant?
Stock warrants are an attractive vehicle for sales incentives, corporate control transactions, and lending transactions. But watch out: Determining fair value can be tricky.
The Importance of Lingering Volatility for Option Valuation
Historical volatility can be a factor in determining the fair value of employee stock options. Volatility was sky-high during the 2007-10 recession; today, not so much. Is now a good time to grant more options?
How Many is Enough? Sample Selection and CEO Pay Ratio Accuracy
An emerging hot topic regarding the new CEO pay ratio rule is whether using statistical sampling to identify the median employee can simplify the process or trigger additional complexity. This Issue Brief explains why sampling may prove to be more trouble than it’s worth.
Gear Up—FASB’s ASC 718 Revisions Are Coming Soon
On November 23, 2015, the FASB met to finalize their decisions on how to update ASC 718. Learn about the decisions made and what to expect in the soon-to-be-released Accounting Standards Update.
Highlights from the 23rd Annual NASPP Conference
Equity Methods was a sponsor of the NASPP Conference, held in San Diego in late October. As usual, it was a lively, insight-filled event. Here are some of our takeaways for this year.
Equity Methods Achieves “Unprecedented” 100% Client Satisfaction Rating, Says Latest Group Five Benchmarking Study
For the second straight year, Equity Methods is rated first among financial reporting service providers for client loyalty and overall satisfaction.
Total Shareholder Return: How Long Is Long Enough?
Most relative total shareholder return (TSR) programs have performance horizons of just three years. But Is that long enough to achieve your desired shareholder outcomes? Read our article in CFO Magazine.
The Proxy Statement’s New Role
The proxy statement is changing in ways that have deep implications on for how investors consume corporate information. These changes, largely driven by Dodd-Frank, are giving rise to new risks and business imperatives. Here’s an overview of what’s happening, along with our thoughts on how finance and HR leaders can stay ahead of the curve.
Novel Award Designs
The 2015 granting and proxy season yielded a rich variety of equity award designs. Here are seven of the most intriguing ones.