Surprise – Director Comp Must Be Fair
Surprise – Director Comp Must Be Fair Stockholder approval of an incentive plan is not a foolproof defense against an “entire fairness review” of self-compensation decisions, as the Citrix Systems, Inc. (“Citrix”) board of directors learned the hard way. In Calma v. Templeton et al, a recent derivative action on behalf of Citrix, a stockholder […]
ASC 350 Intangibles – Goodwill and Other: Goodwill Impairment for Financial Reporting and Step Zero Test
Overview Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350 provides guidance on financial accounting and reporting related to goodwill and other intangibles for U.S. GAAP, other than the accounting at acquisition for goodwill and other intangibles acquired in a business combination or an acquisition by a not-for-profit entity.Per ASC 350, originally issued […]
Houlihan Capital’s whitepaper on ESOPs
Houlihan Capital’s whitepaper on ESOPs What is an ESOP? An Employee Stock Ownership Plan (“ESOP”) is a defined contribution retirement plan, authorized by the Employee Retirement Income Security Act (“ERISA”) similar to a profit sharing plan. Passed by Congress in 1974, ERISA provides tax incentives to establish ESOPs in accordance with the Department of Labor […]
Going Private vs. Going Dark
Public companies are required to comply with United States Securities and Exchange Commission (SEC) filings and regulations. On average, public companies can spend anywhere from $1million to$3 million per year more than similar private companies due to regulatory and financial reporting costs. Studies have shown that public companies spend more on investor relations personnel, board […]
Fair Value Best Practices and Implementation
Fair Value Best Practices and Implementation Overview Given the difficulty of valuing illiquid assets and the potential for conflict of interest, hedge funds, private equity firms, and other investment managers and financial institutions (“Asset Management Firms”) are receiving greater attention from regulators, investors, auditors, politicians, and other industry participants, with the trend toward a well […]