The NASPP Blog

For today’s blog, I have a few unrelated developments in stock compensation.

HSR Act Thresholds
Good news: now executives can acquire even more stock! Under the Hart-Scott-Rodino Act, executives that acquire company stock in excess of specified thresholds are required to file reports with the Federal Trade Commission and the Department of Justice.  The FTC has increased the thresholds at which these reports are required for 2016 (the thresholds are adjusted every year).  See the memo we posted from Morrison & Foerster for the new thresholds, which are effective as of February 25, 2016.

If you have no idea what I’m talking about, check out our handy HSR Act Portal.

Nonemployee Accounting
More good news!  The FASB is still reconsidering the accounting treatment of awards issued to nonemployees.  You may recall that, as second phase of the ASC 718 simplification project, the Board directed the FASB staff to research whether it would make sense to bring awards nonemployees under the scope of ASC 718, if not for all nonemployees, than at least for those who provide services that are similar to employee services.  In December, the FASB staff presented its research to the Board and the Board directed the staff to continue its research.  So the possibility of awards to nonemployees eventually being accounted for in the same manner as awards to employees is still on the table.

ASC 718 Update
And while we’re on the topic of ASC 718, no word yet on when the final update will be issued for phase 1 of the simplification project.  As of 12:32 AM today, the FASB website still lists the estimated completion date for this project as Q1 2016, which means we could see it any day now. However, I have heard unsubstantiated rumors that it may push into Q2, so don’t start holding your breath just yet. Personally, I’m betting on the week of March 21, because I’m presenting on it twice that week: once at the 12 Annual CEP and Silicon Valley NASPP Symposium and later in the week for a Certent webinar.

– Barbara