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Performance Awards

In response to Pay for Performance compensation trends, EASi continues to expand its support for performance awards. Our goal is to make it easier for you to do what is largely a cumbersome and manual process today.

Our recent enhancements are outlined below. EASi remains committed to being the leader in performance award support. Ultimately, we plan to handle all the major models in the industry as well as performance stock options.

Performance Awards - Cliff Vesting Multiplier Model

In 2006 EASi began supporting the accounting for cliff-vested performance awards. The software handled all areas of accounting including: expense, corporate tax, dilution and SEC disclosures.

In November of 2008, EASi added full administrative support for cliff-vested multiplier model performance awards. EASi now supports incremental shares earned above a target award amount, plus automated cancellation of shares when target performance goals are not met. Performance versions of both restricted stock awards and restricted stock units are supported.

Under a multiplier model, a target number of shares is designated with an earning potential ranging anywhere from zero to a specified amount above 100%. EASi makes it possible to enter the target number of shares for each grant, (Target shares awarded) plus the minimum and maximum earning potential (Performance (Vesting) Factor) for the grant.

EASi supports three possible outcomes for total shares earned:

  1. Target with earning at 100%
  2. Target + Incremental with earning at greater than 100%
  3. Target - Cancelled with earning at less than 100%

EASi Performance Awards Overview

Process Vesting, Deferral & Tax Events for Performance Awards

EASi provides a tool that makes it easy for you to apply the performance factor to a group of awards upon the vest processing. With EASi, both cancelled shares and incremental shares are automatically recognized throughout the system. For performance awards, vesting, deferral and taxable events are processed one event type at a time. EASi lets you process the following specific events:

  • Vest w/Release
  • Vest w/Deferral
  • Deferred Release
  • 83(b) Election

Once you have selected an event type to be processed, then provide the vesting date and Performance Factor, you can see the list of awards that are about to be processed. From the list, you can select specific awards to skip in the processing.

In addition to the new processing screen, there is a new Performance Award Taxable Event List screen that shows past events that have been processed.

Incremental Shares and Cancelled Shares in Reports

For reports specifically written for performance awards, there are columns for Target Shares Awarded, Cancelled Shares, Incremental Shares, and Actual Shares Earned. For standard reports that include Performance Awards, the "Granted" column reflects Target Shares Awarded for unvested shares/units. After vesting where more than 100% of the Target Shares Awarded are earned, the "Granted" column reflects target + incremental. If shares/units are cancelled, the "Granted" column reflects Target Shares Awarded and the cancelled shares/units are reflected in the "Cancelled" column.

Performance Award Vesting Detail Report

You can generate a "Performance Award Vesting Detail" report that shows only grants for which the vesting/tax event has been processed. There is only one vesting tranche per grant. The report can be generated with both a Vesting Event date range and an Award Date range to help you identify the number of Incremental Shares that have impacted the "Shares Granted" number.