Two Datasets and a Forecast: SBC Non-GAAP, Moonshots, and ASU 2024-03

Stock-based compensation (SBC) continues to generate some of the most consequential debates in financial reporting and executive pay. In this webcast, we share insights from two original Equity Methods research initiatives and offer early predictions on a third area where the rules are about to reshape practice.

First, we examine how S&P 500 companies treat SBC in non-GAAP earnings. We look at the prevalence of exclusion versus inclusion and identify the patterns that emerge by sector, SBC intensity, and company growth profile. Second, we unpack our proprietary dataset of moonshot grants, the highly leveraged equity packages that are redefining CEO pay at the upper end of the market. We close with our outlook on ASU 2024-03 and how it may change the way investors use SBC-related financial data.

Highlights include:

• How the S&P 500 treats SBC in non-GAAP earnings, including trends by sector, SBC intensity, and growth profile
• How company decisions to include or exclude SBC influence investor sentiment and approaches toward valuation
• Structural features of moonshot grants, including performance metrics, time horizons, and proxy disclosure strategies
• How innovative moonshot grant designs may impact broader long-term incentive program design
• Early predictions about ASU 2024-03 and its likely impact on SBC presentation within the financial statement notes

Join Takis Makridis and Therese Sebastian for a data-driven discussion on three of the most analytically interesting topics in SBC today.

CPE Credits: 1.0 (available to live webcast attendees)
Field of Study: Specialized Knowledge
Program Level: Overview
Advance Preparation: none required
Prerequisites: none required
Additional CPE details