More than three-quarters of respondents said they are outsourcing option valuation as a result of the increased complexity and scrutiny associated with FASB Statement no. 123(R) implementation. A majority of executives reported that reconciling the tax benefit for awards that were partially or fully vested upon adoption of the standard, as well as the grant-by-grant reconciliation of the option exercise tax benefit, was challenging or burdensome.
Almost 60% said they have increased the involvement of their compensation committee in designing compensation programs.
For more information on FASB Statement no. 123(R) implementation, see “ Options and the Deferred Tax Bite,” March 06, page 71; “A Road Map for Share-Based Compensation,” April 07, page 50; and “Avoiding FASB 123(R) Pitfalls,” May 07, page 74.
Source: Insights for Technology Business Leaders: Stock-Based
Compensation Practices in Transition, Grant Thornton LLP, www.grantthornton.com .