Agenda reported on a new Monte Carlo valuation simulator being launched this month by Equilar and Equity Methods to facilitate companies’ valuation of performance awards for their disclosure required by the SEC’s new Pay Versus Performance rule. The simulator is also expected to serve as an ongoing monitoring tool for companies or their boards seeking to track valuation of awards from quarter-to-quarter or other periodic timeframe.
The rule requires revaluation after the initial grant date of outstanding equity awards through the vesting dates in the context of changing assumptions, which will be a new practice for most companies.
See “‘Pay vs. Performance’: New SEC Rules Require Companies To Implement New Process To Track Equity Comp” (FEI) and additional resources on our Pay for Performance page.
This post first appeared in the weekly Society Alert!