Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Preparing your Equity Compensation

Plan for Year End Close

• Identify and remove inefficiencies from your company' s

year-end relative to your equity compensation plans

• Identify red flags related to your equity compensation plan

accounting and regulatory compliance to avoid issues that

will complicate your company's year-end close

• Understand how technology is being leveraged by

companies to improve the quality of equity compensation

plan accounting, and mitigate regulatory compliance risk

exposures

After attending this event you will be able to:

Learning Objectives

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Welcome to Proformative

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Preparing your Equity Compensation

Plan for Year End CloseDonna Bell, CEP, VP of Administration Services, EASi

Kathy Biddle, CEP, Financial Reporting Specialist, EASi

Mary Lee, CPA, Client Service Manager, EASi

Speakers

Kathy Biddle, CEP

Financial Reporting Specialist, EASi

Donna Bell, CEP

VP of Administration Services, EASi

Mary Lee, CPA

Client Service Manager, EASi

Learning Objectives

• Learn how to efficiently audit your

database to avoid problems during

close time

• Determine which accounting

modifications and transactions you

may be able to tackle in advance of

year-end

• Present a clearly organized process

and schedule for reconciling with

Payroll, HR, and Tax

• Formulate an employee

communications plan and know which

information to share and when

• Define a list of key activities for

January 2nd

Agenda

• Accounting Close Activities

• Pre-year-end checklist

• Auditing your database

• Reconciliations

• Checklist for 1/2/2015

• Administrative Close Activities

• Pre-year-end checklist

• Auditing your database

• Reconciliations

• Employee Education

• Checklist for 1/2/2015

• Tips for Streamlining Year-End

Processes

• Deadlines

Agenda

• Accounting Close Activities

• Pre-year-end checklist

• Auditing your database

• Reconciliations

• Checklist for 1/2/2015

• Administrative Close Activities

• Pre-year-end checklist

• Auditing your database

• Reconciliations

• Employee Education

• Checklist for 1/2/2015

• Tips for Streamlining Year-End

Processes

• Deadlines

Accounting YE Checklist

Audit data monthly: bad data =

incorrect calculations

Gather complete information from

other departments (e.g., HR,

Legal)

Make sure you understand the

calculations and methodology in

the accounting reports (especially

before auditors come in)

Seek out any changes to

regulations

Review accounting policies and

methodologies

Audit your Database - Accounting

• Missing valuation records

• Forfeiture rates

• Retirement eligibility

dates

• Corporate tax rates

• Performance factors

• Modifications

Material Modifications

Generally trigger modification

accounting

Generally do not trigger modification

accounting

o Option exchanges

o Equity restructuring

o Acquisitions

o Other changes to original terms of

grant, such as extension of exercise

grace period, acceleration of

vesting, 409a changes, or allowing

an employee to retain options post-

termination

o Stock split/Spinoff/Equity

restructuring with an anti-dilution

provision in plan

o Acceleration of vesting unrelated to

termination

o Additional features such as

permissible exercise methods or

name changes

Thank you for your interest in this presentation.

View the on-demand webinar or download the full

presentation at:

www.Proformative.com

Preparing your Equity Compensation Plan for

Year End Close