Navigate the Changing Regulatory Environment
Despite equity’s many benefits, it also presents challenges. Particularly when it comes time to administer and report this benefit in an ever-evolving accounting and regulatory environment. Equity compensation accounting and reporting rules can be highly nuanced, requiring special expertise that many companies find impractical to maintain in-house.
Infinite Equity is here to bring automation, control, and efficiency to even the toughest cases.
With deep experience across all equity vehicles, including:
- stock options,
- restricted stock awards and units,
- appreciation rights, and
- employee stock purchase programs
Infinite Equity offers a truly end-to-end solution, benefiting companies who offer equity to their employees.
Our team of experts provide a wide-range of reporting solutions for all award types, requirements, and administration systems.
Outsourced Financial Reporting
Infinite Equity can support reporting requirements with a fully outsourced approach covering all types of awards and unique provisions. Solutions are designed to support your expense, tax, earnings per share, and disclosure needs.
Reporting for Employee Stock Purchase Plans can be complex and data intensive, and it’s often not fully supported by administrative systems. Infinite Equity offers a range of fully compliant, sustainable ESPP reporting solutions.
Modification of existing awards is common and can range from basic (e.g., accelerations, extension of exercise periods, and performance goal adjustments) to the more complex (e.g., re-pricing and exchange of underwater options). Infinite Equity’s support includes determining the accounting treatment, calculating the fair value and incremental expense, a signed report, and audit support.
Transactional Support for M&A and Spin-Offs
Infinite Equity offers custom solutions for companies involved in M&A or spin-off transactions.
Reporting System Conversion
Changing administration systems or migrating from spreadsheets is challenging and can have a material impact on financial statements. Infinite Equity combines accounting expertise with knowledge of the most prevalent administrative systems to assist companies through conversion.
Infinite Equity enables companies to expertly navigate award design with comprehensive understanding of accounting implications to ensure success and avoid grant date “surprises.”
Peer Group Development
Companies may need to establish a peer group to develop valuation assumptions. Infinite Equity recommends an appropriate industry peer group by considering critical factors.
Companies need defensible and auditable assumptions within their valuation models. Infinite Equity examines available sources and methodologies to determine a recommended approach for each assumption.
Fair Value Estimation
Infinite Equity calculates the fair value of your equity award after selecting the appropriate valuation model (Black-Scholes, Binomial, Monte Carlo, etc.).
Infinite Equity delivers certified reports and will walk your audit team through the analysis and results to ensure complete sign-off.
Infinite Equity provides visibility of the award design’s impact on financial disclosure, including the Summary Comp Table and eventual realized and realizable pay illustrations.