The SEC’s Guidance on Spring-Loaded Equity Awards

Episode Notes: 

• What is spring-loading? (00:40)
• Reminiscing about the option backdating scandal (4:58)
• Summary of the SEC’s guidance (8:49)
• Impact of SAB 120 on grant valuation (10:31)
• Practical implications of SAB 120 (14:27)
• Disclosures required for spring-loaded grants (19:06)
• Tips to avoid inadvertently spring-loading equity awards (23:30)

Other Resources on This Topic:

• Examining the SEC’s New Guidance on Spring-Loaded Grants
• SEC Targets Spring-Loaded Equity Awards
• Staff Accounting Bulletin No. 120
• Why I Did Not Go To Jail 

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