The NASPP Blog

Our popular “Meet the Speaker” series, featuring interviews with speakers at the 25th Annual NASPP Conference, is a great way to get to know our many distinguished speakers and find out a little more about their sessions in advance of the Conference.

For today’s “Meet the Speaker” interview, we feature an interview with Rob Miceli of Merrill Lynch, who will lead the session “Further on up the Road: ASC 718 Compliance in 2017.”  Here is what Rob had to say:

NASPP: Why do NASPP Conference attendees need to know about the current landscape for ASC 718 reporting?

Rob: An optimized equity plan administration solution in 2017 has to include comprehensive reporting in support of the share-based compensation accounting requirements associated with the awards that are issued.

In driving toward a solution that meets any particular issuer’s specific financial reporting requirements, it is helpful to be mindful of both the broad and nuanced issues relating to award characteristics themselves, data organization or storage issues, transactional occurrences, or other unique reporting requirements that can create complexity in the financial reporting area.

Whether in the context of examining current processes in an effort to optimize the status quo, or in terms of evaluating the marketplace for tools to assist with financial reporting, this Power Session will provide attendees with a practical framework for thinking about what characterizes an optimal ASC 718 compliance process—both in general and in the context of specific issues that may be relevant to their particular organization.

NASPP: How can companies improve their ASC 718 reporting processes?

Rob: As with many areas within the equity plan administration landscape, with respect to successfully supporting the financial reporting requirements of equity plans, the devil is often in the details.

When considering the reporting solutions available for ASC 718 compliance, an extremely helpful exercise can be to slow the process down and, as early in the process as possible, ensure the demonstrations and discussions that are occurring are grounded in a level of detail that allows all parties to determine with precision whether the firm-specific reporting requirements in question can be met.

While the accounting standards stipulate—for the most part—somewhat rigidly what our requirements are, the particular share-based compensation accounting needs that can arise from company to company can be quite specific. Converting to a new accounting platform is a non-trivial task, so if an implementation project is going to be undertaken we better be sure the end result will provide precisely what is required.

One specific best practice step can be inquire as to whether sample data following a series of specific transactions and examples can be simulated in the solution environment that is being reviewed so that a relevant, apples-to-apples analysis can be conducted.

NASPP: What is the silver lining to ASC 718 reporting?

Rob: As we are now more than 10 years from the adoption date of FAS 123(R), we are in a position to consider quite a bit of information as we evaluate how best to handle our equity plan reporting requirements.

Different tools and solution approaches are out there and specific issues both that are complex and that would be classified as issues we would expect to be cleanly supported in almost every instance are known.

Being aware of the more prevalent issues that may be out there and the different solution approaches that do exist can help any issuer develop an ASC 718 compliance process that is optimal for them.

NASPP: What is your superpower?

Rob: At the moment, with a two- and a four-year old at home, I am channeling all of my superpowers into my toddler negotiating skills. I’m pretty good but if anyone has some best practice advice in this area, please let me know.

Don’t miss Rob’s session, “Further on up the Road: ASC 718 Compliance in 2017,” at the NASPP Conference!

About the NASPP Conference

The 25th Annual NASPP Conference will be held from October 17-20 in Washington DC. This year’s program features close to 100 sessions on today’s most timely topics in stock and executive compensation; check out the full agenda and register today!