FAQ’s / Accounting & Financial Reporting

Frequently Asked Questions

Accounting departments deal with a host of complex issues, including changing performance conditions, complex compensation expense allocation due to grantee mobility, management of tranches, unique retirement eligibility policies by grant type, and management of predicted forfeiture rates versus actual forfeitures. How can EquiLink help?


Calculations for compensation expense for performance awards must include functionality to reflect periodic changes in shares estimated to vest based on the company’s relation to a target. EquiLink supports this through a time-stamped function that multiplies the number of shares awarded by a multiplier. This results in a true-up during the period of change from the previous outlook to the new outlook with the updated multiplier. History is maintained and the multiplier is applied prospectively until changed.

EquiLink supports accelerated vesting for retirement eligibility by comparing the grantees retirement eligibility to an award’s vesting end date. EquiLink can also be configured to support minimum service periods before retirement eligibility is permitted.


Other early acceleration can be handled to automatically vest shares through the Modification section of the system that allows you to change vesting dates as of a period.

Yes. Tranche management is not as simple as it sounds. In EquiLink, tranches are linked to an award and any change to that award can modify its underlying tranches. The typical problem with tranches is that the broker does not organize data by tranche and you have to create your own tranches in spreadsheets manually. Any change to an award requires that you make changes to multiple tranches. EquiLink gives you the ability to modify multiple plans and therefore multiple tranches in just a few clicks.

EquiLink is designed to allow any component of the compensation expense calculation to be modified as of a period. Through our search capabilities, either an award can be modified for all grantees under the award, all awards assigned to a grantee can be modified, or a single award for a grantee can be modified.

EquiLink not only tracks where an employee is located, but it can track all the different location types for an employee and will automate the allocation of expense for your journal entries as that person moves to different locations, departments or even pay grades.

Users can select their preferred forfeiture rate application methodology. Either a static rate can be maintained in the system or users can select to use a compounding function for a dynamic forfeiture rate, which generally aligns the forfeiture rate adjustment with actual forfeitures.

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