Navigating PvP for Newly Public Companies
The SEC’s new Pay Versus Performance (“PVP”) disclosure rules contain a variety of nuances and complexities, especially for companies that recently went public and must comply with the new rules. The SEC announced the adoption of its new pay versus performance rules, or Item 402(v), on August 25, 2022. A detailed summary of the new rules can…
Unexpected Expense
Is Your Stock-Based Compensation Program about to Cause a Second Wave of Expense? The first quarter of 2020 was one of the worst quarters for the stock market since the Great Recession, with the S&P 500 Index dropping over 20%. Many companies are preparing for reduced revenue and earnings with shelter in place orders slowing…
Alternative Types of RTSR Plans
Once a company decides that it is going to grant performance shares contingent on Relative Total Shareholder Return (“RTSR”), one of the initial plan design considerations is the “classification” of RTSR plan you are considering, of which there are generally three: Each of the classifications have their own pros and cons, which we have summarized…
TSR Calculation – Best Practice
Section 1 – TSR Calculation Considerations One of the benefits of using Relative Total Shareholder Return (“RTSR”) as a performance metric is the transparency of the calculation. It is based on empirical stock price data which is published daily from many different objective financial data sources. Nonetheless a wide variance of methodologies for calculating Total…