Capitalization Matters

As I was starting to write the first part of my new blog series: Five Ways to Perform Year-End Equity Management and FAS 123R Reporting Faster, I received an email from a new customer who recounted a conversation he imagined between him and his auditor. It was timely because it set out nicely how an equity management system would make year-end FAS 123R reporting faster and save audit fees.

As the founder of Two Step Software, I've been asked numerous times how to simplify the many complex aspects of equity management. When we developed our online system 15 years ago, our goal was to use a database application to make the equity management and reporting process easier, faster and more accurate. And as we continue to work with new customers and listen to their challenges, we often come back to the same three-part framework that can be used create a solid foundation for anyone involved in this type of work. The basic framework consists of the following:

In a recent blog post, I discussed a webinar I attended from Stock & Option Solutions relating to five common mistakes made in year-end equity management work and a few automation secrets that can be used to avoid them. I summarized what I learned as follows:

With less than four months remaining before year end, I recently attended a webinar hosted by Stock & Option Solutions on taking the pain out of year-end equity management and reporting. The webinar went through five common mistakes made in year-end planning and the most effective "automation" secrets to avoid them. This was an excellent webinar that any stock plan administrator or equity compensation professional should view.

On my way to the International Legal Technology Association’s 2009 conference, I read the Wall Street Journal’s front-page article, “Billable Hour Under Attack – In Recession, Companies Push Law Firms for Flat-Fee Contracts,” with great interest. The initial talk about a change in the ways law firms bill their clients came as the financial markets were on the brink of collapse. Now, almost 12 months later, the evidence shows that there is a real shift taking place—and it may not be as temporary as the current economic downturn.