Relative Total Shareholder Return (“TSR”) Modifier Programs
Considerations and Accounting Implications Companies considering a relative TSR plan or a change to a current program may want to evaluate a Relative Total Shareholder Return Modifier. As a company matures, it may face pressure...
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...
The New AS 1210: Using the Work of a Specialist
The valuation and accounting for employee equity under ASC 718 can be quite material and has ramifications throughout your corporate financials. Some of the exhibits that will be affected are the income statement, the disclosures...
TSR Calculation: Accumulated Dividends
Infinite Equity laid out the preferred method for calculating Total Shareholder Return (TSR) here. However, the calculation of TSR ultimately must follow the definition outlined in the legal grant agreement. Some companies do not assume...
The “Stub Period” Challenge
Relative Total Shareholder Return (RTSR) awards are the most prevalent type of performance awards in the global marketplace. The accounting fair value under ASC Topic 718 for RTSR awards is estimated using Monte Carlo simulation...
Relative TSR Plan Design Checklist
Performance shares earned contingent on a performance metric of Relative Total Shareholder Return (RTSR) is the most prevalent metric seen globally. However, the design of a RTSR plan can be quite challenging if not done appropriately. The...
Don’t Let International Peers be Foreign to You
Performance shares earned based on Relative Total Shareholder Return (RTSR) are the most prevalent form of performance equity in the global marketplace. Selecting appropriate peer companies has always been a critical aspect of RTSR plan...
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,...
