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Case Studies

ARMtech's EquiLink software automates complex accounting for Fortune 500 Energy Company (EnCo). EquiLink also supported allocation to multiple locations and integration with general ledger.


EnCo's plan was complex because the plan included retirement eligibility, other early vesting conditions, stock ownership requirements that could impact whether shares vest in cash or stock, and performance metrics that changed each year for both the cash and stock portions of a grant. Together, these conditions created complex accounting requirements as plans were periodically modified and grantees vesting schedules under those plans deviated from the plans' original vesting terms.

For budgeting and journal entry purposes, EnCo also require that compensation expense be allocated to multiple location types for grantees. Grantees can also transfer between locations.

Without any other support, EnCo turned to spreadsheets. Highly complex models had to be completely maintained manually and redoing the schedules each period was time consuming. Allocations then had to be made in a separate set of spreadsheets, which were then aggregated into a general ledger format.


The EquiLink solution is designed to account for any modification to a plan or a grantee in relation to a plan. It also provides for alternate amortization schedules for grantees that have retirement eligibility or termination considerations. Our solution imports data from multiple sources. Plan and transactional data was extracted from broker spreadsheets and assignment, retirement eligibility, and stock ownership data for grantees was provided from HR. EquiLink's database solution then is able to combine the data to calculate compensation expense, including adjustments on the plan level, such as modifications due to forfeiture rate or performance score changes, and adjustments to grantees' individual amortization schedules under the plans. EquiLink then allocates the expense to the different locations grantees are assigned to. Finally, EquiLink integrated this allocation into EnCo's general ledger by providing journal entries in the format the general ledger required.


EnCo now is able to automate the reporting of compensation expense for their complex plan, reflecting modifications prospectively while retaining history.

Why EquiLink?

EquiLink is highly configurable and can handle the most complex plans. This means that expensive, customized solutions are not required. EquiLink also provides complete control of your data so that future planning and audit requests can be handled in-house. Our deep knowledge of complex integration issues provides an opportunity for process improvements in the future.

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