Buried in Board Reporting? We Know the Feeling!

Private company executives face high demand from their boards of directors to report data that will drive critical business decisions. This call for greater transparency and deep analysis puts a significant burden on typically lean teams. Below we outline a few pitfalls of investor and management reporting and provide an alternative to streamline the process.

Participant Issues: Using Stock Options to Meet College Costs

Justin, a mid-level operations executive, pops into Carol’s office one day. Justin is seeking advice from the company’s long-time stock plan administrator about tapping funds for his son’s college tuition next fall. While Justin has several options for meeting college costs for his son, Aaron, he’s trying to understand the net after-tax proceeds if he used options to fund tuition costs.

XBRL: To Outsource or Not to Outsource

XBRL can be complicated, time consuming and time sensitive. A comprehensive disclosure management vendor will offer a range of service options from XBRL review and one-time tagging services to full XBRL outsourcing. Different models work for different teams, and as requirements change and team structures transform, so do your needs. Here are a few questions to ask yourself when evaluating the right service model for your company.

How to Maximize Participation in Your ESPP

Employee stock purchase plans (ESPPs) offer employees a fantastic opportunity to establish an ownership stake in their company and share in its potential growth. The company benefits from ESPP participation as well, because it fosters a positive culture where everyone is focused on a shared goal. While this sounds like a win-win situation, it turns out that many people miss out on this important opportunity.

Three Steps to Choosing the Right Disclosure Management Solution

In order to stay compliant and maintain efficiency, public companies need to continually evaluate and improve their external reporting processes. Many times there are workflow changes that can make all the difference like scheduling a post-mortem of your recent filing or automating the flow of data to mitigate risk and improve quality. Other times, companies might see a need to re-assess their vendor relationships, software functionality, and level of service. Shopping for a new vendor can be tricky, but there are three things we suggest you do to make sure you head in the right direction.

Why Your Equity Plan Should Be Broad-Based

We hear a lot these days about “the war for talent.” “Talent” is never defined, nor is it ever explained why labor markets are so much more competitive now than they used to be (the “war” existed, it was said, even when unemployment was very high), but we all know that what is meant is mostly top-level managers and maybe software engineers. These are the people, it is said, who should get most or all of the incentives, including equity. There are a number of explanations for this that seem to make sense but that research shows are just not true.

Guidance from the SEC on Custom Axis Tags

The SEC Division of Economic and Risk Analysis recently examined the use of custom axis tags in XBRL exhibits that reporting companies submitted with their 10-K disclosures. An axis tag in XBRL allows a filer to divide reported elements into different dimensions while also showing the relationships between separately reported elements. The SEC’s assessment found that while more than 300 standard axis tags exist in the U.S. GAAP taxonomy, the average annual XBRL exhibit only uses about 20.