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State of the Union in Executive and Equity Compensation

By Morgan Witt posted 02-19-2024 12:57 PM

  

This content has been provided by Equity Methods, a Community and Chapter Sponsor of the SEC Professionals Group. Equity Methods provides valuation, financial reporting, and human resources advisory services related to equity compensation and other complex securities.


On March 8, Equity Methods is hosting its annual state of the union in equity and executive compensation webcast. Now in its 11th year, the webcast provides a panoramic look across the top issues facing both the office of the CFO and CHRO. 

The stock compensation landscape has taken on new complexity and risk in the wake of recent SEC rule-making, FASB standard-setting, and a host of actions by governance groups and litigators. Executive compensation is primarily covered in the proxy, which is filed with the SEC and includes the annual say-on-pay vote. Total equity compensation appears in the 10-K, and is what investors scrutinize as they assess topics like dilution and profitability.

This year, we’ll look at a number of sleeper issues that can take companies by surprise. A few examples include:

  • The intersection between Item 402(x) of Regulation S-K and SAB 120, and how the rules apply different filters and bright lines
  • Heightened investor attention to equity compensation and its effect on valuation, with the FASB’s project on income statement disaggregation shining an even brighter spotlight on these issues
  • Recent litigation against Elon Musk’s 2018 compensation package fair valued at $2.5 billion (and which delivered over $50 billion in value), which will have major implications for granting practices
  • Share pool management as stock prices surge for some but struggle for liftoff among many others

Register for Equity Methods' webcast

March 8 | Equity Methods Statue of the Union in Equity Compensation
Follow the link and register for the upcoming Equity Methods annual state of the union webcast, which delivers insights to both financial reporting and executive compensation professionals. 

Learn more about Equity Methods
Visit https://equitymethods.com to find more articles, resources, and events. 


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