Go Dynamic! A Forfeiture Rate Comparison

By Michael Esposito, CEP When companies issue stock awards, they’re required to recognize the expense for each grant. In doing so, they must take into account the number of forfeitures they anticipate. This estimate is based on historical forfeiture activity analysis and is expected to change over time as continued...

FASB Clarifies Accounting Methods for Awards with Performance-Based Vesting

The US standard-setter splits from IASB concerning performance awards with far-away targets June 26, 2014 By Mike Esposito Until now, FASB gave some latitude concerning the expense calculation of performance awards whose metric might not be satisfied during the participant’s employment. It happens all the time, right? A performance vest...

Black-Scholes Calculator

While the Shareworks private market solution greatly simplifies the option valuation process we provide this Black-Scholes calculator to demonstrate a method that non-public companies find useful if their plan administration needs are minimal. This spreadsheet can be used to calculate “fair value” under ASC 718. Instructions for Using the Black-Scholes...

Equity Compensation Reporting: A Beginner’s Guide for Private Companies

When it comes to financial reporting associated with equity compensation, private companies face tough challenges. Determining a valid stock price volatility and calculating a value to your awards can be more difficult for private companies than for their publicly-listed peers. And, if you’re like many individuals in privately-held companies, equity...