Compensation toolkit: Challenges for private company awards

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC National Office partners Jay Seliber and Ken Stoler to discuss private company-specific accounting considerations for stock compensation.

In this episode, you will hear them discuss:

• 1:30 - Key differences between public and private companies when accounting for equity-classified stock awards 
• 9:03 - Private company accounting considerations for liability-classified stock awards
• 13:38 - An overview of profits interest awards commonly seen at private companies
• 21:20 - Equity restructurings and key points to keep in mind
• 33:08 - Accounting for loans given to employees to purchase stock
• 50:18 - Where to find more information on stock compensation for private companies

Want to learn more? Refer to previous episodes in our Compensation toolkit series on making sense of stock award modifications, equity or liability classification and unraveling complex vesting conditions. Also refer to our Stock-based compensation guide for more helpful information.

Jay Seliber is a partner in PwC’s National Office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative on the FASB's Emerging Issues Task Force.

Ken Stoler is a partner in PwC’s National Office with over 25 years of experience. Ken specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits, helping companies navigate their employee compensation issues during an IPO, spin off, acquisition, or other major transaction or event. 

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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