Nathan O’Connor
Managing Director
Subscribe to Our Newsletter
Hear more from Equity Methods: Your trusted partner in equity compensation excellence.
Among other things, Item 402(v) requires companies to produce a proxy table reflecting interim fair value measurements on all outstanding unvested and in-period vesting awards. This includes awards requiring complex modeling, like market condition awards and stock options. Companies will need to track year-over-year fair value changes, compensation amounts across potentially changing groups of named executive officers, total shareholder returns (TSRs) across potentially changing peer groups, and more.
We can help you calculate the fair value of all outstanding unvested and in-period vesting awards.
How We Help
We do the following to help you prepare for the requirement:
- Perform interim fair value measurements for all equity awards, including options, TSR-based awards, and other performance equity, taking into account the specific timing and terms of each
- Automate the ongoing fair value measurement and TSR calculations
- Develop multiple renditions using graphical, narrative, and combination approaches of the “clear description” required of CAP to company TSR, net income, and the CSM, as well as between company TSR and peer TSR
- Perform the required CAP calculations for the main disclosure table and the footnote reconciliation tables
- Collaborate with you to develop additional analytics either for internal analysis purposes or supplemental disclosure
