Stock Compensation

Stock Compensation

An agreement in which an employee, usually a high-placed executive, receives stock in the company in addition to or instead of cash as salary. If the share price for the company increases, stock compensation can be very profitable for the employee. The idea behind stock compensation is to give the employee a significant stake in the success of the company, which will, in turn, encourage him/her to act in the best interest of shareholders. See also: Qualifying stock option.
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Since the payment procedure for the issuance of 123,000 new shares as restricted stock compensation plan, which was resolved at the meeting of its Board of Directors held on March 23, 2017, was completed on April 21, 2017, the number of all issued shares after the cancellation shall be 559,685,889 which is the same number of shares before the issuance of the new shares.
Partially offsetting this increase in net income was stock compensation expense of USD 840,000, as stock awards were issued during the fourth quarter of 2016 pursuant to the stockholder-approved 2015 Restricted Stock Plan.
Auto Business News-February 18, 2015--General Motors' CEO receives stock compensation worth USD3m
The following data are drawn from the study's key findings related to stock compensation and stock ownership guidelines.
This consensus provides additional guidance and clarification for the accounting treatment of stock compensation awards that have a right of forfeiture or clawback during the post-performance period.
Non-GAAP net income excludes USD186,000 in amortisation of intangibles and USD806,000 in stock compensation expense for Q4 2009, as well as USD186,000 in amortisation of intangibles and USD728,000 of stock compensation expense for Q4 2008.
The results include $973,000 in stock compensation expense, net of tax, an item that was not expensed in the prior-year quarter.
Charges related to new standards for stock compensation, however, ate into net earnings, the company said.
The employee contested the computed value of the stock compensation and did not include the amount in income; the company took a deduction under the safe-harbor provision.
In response to requests from investors and many other parties to improve the current accounting standards relating to employee stock compensation in financial statements, the Financial Accounting Standards Board has published an exposure draft, Share-Based Payment, an Amendment of FASB Statements No.
The change in stock compensation means employees will automatically receive actual shares of Microsoft stock over time instead of options - the right to purchase stock at a set price.
Also mentioned: fair value measurement, accounting for employee stock compensation, stock options and accounting for business combinations.