A robust compensation philosophy often includes some form of equity compensation. While the standard used to be time-vested stock options or stock appreciation rights, the focus has generally shifted to performance-vested equity vehicles. With this change in focus came a change in valuation methodology to a more complex form, as well as a more complex way of accounting for these equity vehicles in expense on the P&L, reconciliation on the balance sheet, and the inclusion in dilutive common equivalents for earnings per share.
Our talented team of actuaries, mathematicians, statisticians, accountants, financial experts and more offers everything a private or public company needs surrounding equity compensation valuation and financial reporting. Whether it’s a simple Black-Scholes valuation or a multi-metric Monte Carlo simulation valuation, standard financial reporting under U.S. GAAP/IFRS 2 or financial reporting for complex Employee Stock Purchase Plans, Aon's Equity Services team has the expertise to support all scenarios.
We’ll help you:
Gone are the days that stock options don’t get expensed, or that time-based equity is the go-to standard. The focus on pay-for-performance has introduced increasingly more complex equity award scenarios, and Aon’s Equity Services team is prepared to help you value these under U.S. GAAP, IFRS2, and other international standards.
Our work typically includes:
The Accounting Standard Codification and International Financial Reporting Standards that dictate how equity awards are valued and accounted for are consistently changing, sometimes with multiple updates in a year that impact the financial reporting. Aon’s Equity Services experts are constantly educated on the most up-to-date laws and regulations and are prepared to directly interface with auditors to make the reporting of these awards as seamless as possible.
Let us know how we can help and a member of our team will be in touch shortly.
The Rewards Solutions practice at Aon and other Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. All personal information is collected and used in accordance with our privacy statement.
If you do not wish to receive these communications, please check here: