Restoring Underwater Incentives: Discretion, Modifications, and More

On-Demand Webcast
Recorded on September 2, 2020

As COVID-19 and its lingering effects on demand and supply continue, many companies are taking or considering action to restore underwater performance metrics. They have a wide array of potential strategies to choose from, beginning with the decision to adjust performance outcomes by exercising discretion on the results or modifying the goals altogether. We’ll explore:

• The differences between exercising discretion and modifying awards
• How the accounting and proxy disclosure works for both discretion and modification
• Why discretion is risky under most equity plans and may introduce much larger risks
• Creative modification strategies to improve the proxy disclosure optics
• Examples of cases involving discretion and modifications
• Taking action on the annual bonus plan versus the long-term equity plan

This webcast qualifies CPAs and Certified Equity Professionals for 1.0 hour of CPE.

CPE Credits: 1.0 (available to live webcast attendees)
Field of Study: Specialized Knowledge
Program Level: Overview
Additional CPE details