Performance Award Essentials
Why this program is critical:
  • Equity compensation has come under heightened scrutiny since Say-On-Pay became the standard and shareholder organizations such as ISS and Glass Lewis began exerting significant influence on equity compensation practices.
  • Achievement metrics vary considerably, as do the accounting, administration and reporting requirements associated with performance awards.
  • Increased complexity of administration and reporting has added new complications in communicating with executives and other award recipients, as well as shareholders.
How we present the course:
  • Webcast sessions with industry experts will explore complex tax, accounting and administrative issues.
  • Supplemental materials provide in-depth coverage of session topics.
  • Interactive quizzes reinforce learning and test your comprehension of the materials presented.
All webcasts are archived and available online after the live presentation. You can begin the program at any time!
 
What we cover:
Two webcasts scheduled in one week cover will cover a broad range of topics, including:
  • Recent trends, Say-On-Pay and shareholder scrutiny.
  • Design considerations, including award types, various metrics, sizing awards and target opportunities.
  • Accounting and valuation requirements, recognition of expense, tax accounting and diluted EPS.
  • Communication with participants and documentation, i.e., award agreements.
  • Determination of achievement, vesting and tax withholding.
Class Schedule

Our first session will focus on recent trends for performance based equity, with the influence of Say-On-Pay and heightened shareholder scrutiny.  Plan design will be reviewed, including various types of awards, such as options, RSAs and RSUs, and different metric types used to determine award achievement.  We’ll take a look at strategic issues and objectives, as well as sizing the award, target opportunities, the performance period and vesting.  We’ll wind up Session 1 with discussion of other plan design considerations, such as dividend treatment.

2.00 hours of continuing education for CEPs

Our second session will focus on accounting, disclosure and ongoing administration of performance awards.  We’ll examine accounting intricacies, such as establishing a grant date, valuation requirements and recognition of expense, as well as how the determination of whether achievement is probable or non-probable is a factor. We’ll take a look at tax accounting and when to include awards in diluted EPS.  We’ll wind up the session with a discussion of administration, communication to award recipients, documentation, vesting and tax withholding, and Section 16 reporting.

2.00 hours of continuing education for CEPs