The Role of Luck in Pay-for-Performance
Arguments in a recent divorce proceeding potentially cast doubt on the idea of pay-for-performance, i.e., that outsized executive compensation is justified by performance. The Jed Clampett Defense If...
View ArticleHow Many Grant Dates Can One Option Have?
How many grant dates can one option have? The answer, as it turns out, is more than you might think. I was recently contacted by a reporter who was looking at the proxy disclosures for a public...
View ArticleNASPP To Do List
Quick Survey on Stock Plan Education The NASPP and Fidelity Stock Plan Services are pleased to announce a joint survey on stock plan education programs. Take this quick survey today to find out how...
View ArticlePay for Pulse No More?
We’ve seen quite a bit of evolution in the mix of equity incentive compensation vehicles and terms over the last decade. The use of stock awards has surpassed that of stock options. Performance based...
View ArticleISS Updates FAQs on Stock Plans
In late March, ISS issued an updated Equity Compensation Plans FAQ. This development was largely eclipsed by the FASB’s issuance of ASU 2016-09, so I haven’t had a chance to get around to it until now....
View ArticleTop Ten Trends in Stock Plan Design
The full results from the 2016 Domestic Stock Plan Design Survey, which the NASPP co-sponsors with Deloitte Consulting LLP, are now available. Companies that participated in the survey (and service...
View ArticleISS, Burn Rates, and Performance Awards
ISS 2017 Equity Compensation Plan FAQ notes that where companies want ISS to include performance awards in their burn rate when the awards are earned, ISS now requires specific disclosures with respect...
View ArticleEPS Targets and ASU 2016-09
Under ASU 2016-09, all windfall and shortfall tax effects of stock compensation will run through earnings in the P&L. When vesting in performance awards is tied to earnings per share, this could...
View ArticleSix Trends in Performance Awards
Earlier this year, I presented five trends in restricted stock and unit awards. For today’s blog, I present a second installment in what I can now officially call a “series”: six trends in performance...
View ArticleWays to Count Performance Awards
Counting the shares underlying time-based awards is usually straightforward: one share granted equals one share issued. Performance awards, on the other hand, usually provide for a spectrum of possible...
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