United States

Executive Compensation

 The clock is ticking to transition.*
It’s time for Tax to address these changes.


DAYS HRS MIN SEC

PUBLIC COMPANY COUNTDOWN


DAYS  HRS  MIN  SEC  

PRIVATE COMPANY COUNTDOWN


*Based on the FASB decision, public organizations should apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Nonpublic organizations should apply the new revenue standard to annual reporting periods beginning after December 15, 2018.

Executive Compensation 

As companies prepare for the changes, KPMG can review long-term bonus compensation and equity compensation grants that have performance metrics. These metrics may need adjustment under the new revenue recognition standard. Longer-term metrics and metrics tied to sales or related measurements may also need additional focus. Allocations of revenue to different years may have to be factored into some performance compensation grants. Internal Revenue Code section 162(m) as well as potential shareholder-advocate focus on longer term grants may be especially challenging under the new regime.

Companies may also want to review the Dodd-Frank clawback provisions for long-term compensation, where applicable. Given the possibility of the additional risk of restatement under the new revenue recognition standard, the claw back rules may come into play more often and affect more executive awards.

 

Contact us

karen-field

Karen M. Field

Principal, Tax

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David Cross

Managing Director, Tax

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Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.
The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.