Translating Compensation “Actually Paid” into Realizable Pay:
How to Not Only Comply with 402(v) but add Strategic Value
The SEC announced the adoption of new pay versus performance rules, or Item 402(v) on August 25, 2022. A detailed summary of the new rules can be found within our Alert found here. The biggest challenge of the...
How to Make Sense of Pay vs. Performance Data
PvP data can be leveraged to assess whether executive compensation exceeds the market and how it aligns to the return realized by shareholders over that same period. In this publication, we share what you need...
Expected Term Input for Re-Valuing Options for the Purposes of Pay vs. Performance
As part of the new Pay vs. Performance (PvP) disclosure requirement, companies must estimate the fair value of outstanding and unvested stock options held by Named Executive Officers (NEOs) as of the end of each...
Commentary on the Latest Compliance & Disclosure Interpretations (“C&DIs”) from November 2023
For Thanksgiving this year, the SEC served up 10 new Compliance & Disclosure Interpretations ("C&DIs") related to the Pay Versus Performance rules on November 21st. The 10 new C&DIs consist of revisions to 2 prior...
Commentary on SEC’s Newly Released Compliance & Disclosure Interpretations
On September 27, 2023, the SEC released 9 new Compliance & Disclosure Interpretations ("C&DIs") that provide clarification on the new Pay Versus Performance rules (Questions 128D.14 – 128D.22). These new C&DIs primarily focus on the...
SEC Pay vs. Performance Rules: Preparing for Year 2 Compliance
Year 1 of filings related to the SEC’s Pay versus Performance disclosure is largely completed and it is already time to begin planning for Year 2. For most companies the biggest pain point is calculating “Compensation...
Navigating PvP for Newly Public Companies
The SEC’s 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...
Explaining Sharing Ratio as Defined from “Pay versus Performance”
The new executive compensation disclosures under Item 402(v) (“Pay versus Performance”) have created new standardized disclosures that are rich for advanced analytics. This brief will summarize the mathematics to define a “Sharing Ratio” based on...
