SEC Updates Accounting Guidance for ‘Spring-Loaded’ Equity Awards
Date: 01/26/22
The Securities and Exchange Commission (the “SEC”) recently updated its guidance on how public companies should account for equity compensation, including new interpretive guidance for estimating the “fair value” of equity awards when companies are in possession of material non-public information. In particular, the new guidance addresses the valuation assumptions required when accounting for stock options or other share-based compensation granted shortly before the announcement of positive, market-moving information (“spring-loaded awards”).
CGR Memo - SEC Updates Accounting Guidance for ‘Spring-Loaded’ Equity Awards.pdf (pdf | 84.83 KB )