SEC Releases Accounting Guidance on “Spring-Loaded” Incentive Awards

On December 8, 2021, Cravath prepared a memo for clients entitled “SEC Releases Accounting Guidance on ‘Spring-Loaded’ Incentive Awards,” which summarized interpretive accounting guidance recently released by the staff of the U.S. Securities and Exchange Commission about the valuation of “spring-loaded” incentive awards. The memo reviewed the potential implications on the equity grant process for companies and provided insights on how companies can respond to the new guidance.

Please click here to read the memo.