Performance Options: Introduction to the Design, Valuation, and Accounting Considerations
Many companies are longing for the clean incentive benefits of stock options, but are unable to grant them because proxy advisors don’t consider them to be “performance-based.” This issue brief provides an introduction to performance options: the circumstances where they make sense, and the unique valuation and accounting challenges they present.
Nonemployee Treatment May Be Getting a Whole Lot Easier
On June 15, the Financial Accounting Standards Board (FASB) met and reached consensus on a series of revisions to the accounting for share-based payments to nonemployees.
How to Choose an Equity Compensation Financial Reporting Solution
An external financial reporting vendor can be critical to your team’s success, so what can you do to ensure you’re choosing the right one? In this blog post, we detail the key factors to consider when going through the selection process.
Long-Term Incentive Plans: The Universe of Design Possibilities
Today’s long-term incentive program requires a careful balance of shareholder, executive, and accounting interests, all against the back drop of increased compensation committee scrutiny.
Compensation Moneyball, Part II: The Simulation of Performance Targets
Today’s compensation committees have a greater expectation of rigor and analytics in goal-setting for performance awards. In this Issue Brief we introduce a data-driven approach to goal setting that utilizes Monte Carlo simulation that can provide additional support for the goals you set.
ASC 718 Revisions Survey Report
We polled a group of equity compensation professionals to get their perspectives on ASU 2016-09. In this report, we illustrate the findings of our survey, revealing the variety of reactions the industry is having to the revisions.
WorldatWork Total Rewards 2016 Conference Roundup
Equity Methods had the pleasure of presenting four sessions at the 2016 WorldatWork Total Rewards Conference, and also heard from some outstanding professionals in the field. Here are highlights from the conference.
Five Predictions for the Proxy of 2020
What will the proxy look like in four years? Earlier this month, compensation professionals got together at the World at Work conference to answer that very question.
Your Piece of the Pie: Understanding the Valuation Impact of Multiple Share Classes
Why do companies end up with multiple classes of equity, and what are the valuation implications of such share classes? This Issue Brief reveals why multiple share classes exist and explains how their different features can make valuing these assets a challenge.
Direct Tracing Share-Based Compensation
A growing trend among larger companies is to push share-based compensation costs further down the organizational chart. We call this “direct tracing.” It’s a hallmark of management accounting, affecting all…