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April 2016 L-Blast: Bonus Payout Debate: Formula vs Discretion! | FASB Modifies Accounting Rules for Stock-Based Compensation | L&A Named One of the 2016 Best Companies to Work for in Texas for Sixth Year in a Row

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Dear Friends,
We can’t believe May is almost here. This year has certainly flown by, and proxy season is almost over. We’re excited to share some great reads with you this month. Hopefully you all enjoy them.

First, we have an L&A original article focusing on the debate about bonus payouts. Everyone seems to have an opinion about formulas and discretion in determining executive incentive payouts. This article discusses the arguments around formula versus discretion and highlights some of the discussions our team has experienced in the board rooms. Once proxies are all in, we anticipate this debate will escalate in the coming years. In this article, we provide some guiding principles for good incentive plan designs and practices.

Our second article gives an update on the revised requirements from the Financial Account Standards Board. They released Accounting Standards Update (ASU) 2016-09 on March 30, requiring changes to several areas of employee-based payment accounting. Be aware, this update affects all organizations issuing share-based payment awards to employees.

Finally, we’re excited to share a recent award L&A received in our last piece. We were named one of the Best Companies to Work for in Texas for the sixth year in a row. Our entire team is very proud of this major accomplishment, and like my mentor and client, Herb Kelleher, used to tell my partner, Chris Crawford, and me, “A satisfied and happy team will always be the best prescription for exceptional client service.”

As always, please let us know if there are any particular topics you’d like to learn more about. We appreciate each and every
one of you.
 
 
Sincerely,
Brent_Signature_white

Brent Longnecker and the L&A Team
Chairman and CEO
Longnecker & Associates
 


Bonus Payout Debate: Formula vs Discretion!

Nearly every employee, shareholder, board member and newspaper reader seems to have his or her own opinion regarding formulas and discretion in determining executive incentive payouts.

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FASB Modifies Accounting Rules for Stock-Based Compensation.

On March 30, 2016, the Financial Accounting Standards Board (FASB) released Accounting Standards Update (ASU) 2016-09, which amends ASC Topic 718, Compensation-Stock Compensation, to require changes to several areas of employee share-based payment accounting.

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L&A Named One of the 2016 Best Companies to Work for in Texas for Sixth Year in a Row.

For the sixth year in a row, Longnecker & Associates was named one of the 2016 Best Companies to Work for in Texas. Out of the 100 companies given this distinction, L&A took the number one spot two prior years and finished in the top 15 this year.

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