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Share-based compensation
Impact of accounting literature: Time to get out of the pool and other changes
Over the past couple of months, the Financial Accounting Standards Board has been busy.
The FASB has “simplified” share-based compensation accounting, to the following effects:
- No more APIC pools (expect more income tax expense volatility from period to period)
- No longer need to estimate forfeitures (again, expect potentially more volatility)
- Cashless exercises are simplified under the new rules (you may want to consider revising your plan documents to allow for the increase in the net-settlement feature)
Bob's Upticks
Timely news & comments on developments in the world of securities and corporate governance.
On April 13, the SEC authorized the issuance of a major concept release. Concept releases are trial balloons that the SEC publishes to elicit input on possible rulemaking. The April 13 concept release is entitled “Business and Financial Disclosure Required by Regulation S-K.”
Given that Regulation S-K spells out many of the disclosure requirements applicable to all sorts of Exchange Act filings, it’s bound to be significant. Read more >>
One of the hottest topics in governance today is director refreshment. Boards comprised of long-serving directors do, in fact, tend to be “pale, male and stale.” Self-perpetuating boards are less likely to be diverse, and there is increasing evidence that companies with diverse boards tend to perform better.
Perhaps it’s a poorly kept secret, but companies and boards have been concerned about this for years if not decades. Corporate America continues to search for the right approach. But what we don’t need is governance by the numbers, which is precisely what some institutional investors propose. Read more >>
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