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Year-End Prep: Equity Data to Reconcile and Audit

The cross-departmental nature of managing an equity plan can make gathering data and keeping up-to-date records a nightmare.  There is no time more crucial than year-end to make sure you reconcile equity plan data across all of your internal stakeholders and departments.

Over the next two weeks, before the internal teams put their heads down for annual reporting, make sure you reconcile these items between human resources, payroll, and your equity plan data:

  • Terminations - Compare 2016 terminations between HR and your equity database. (Is anybody missing?)
  • Dispositions - Ask your broker for a full-year disposition report of ISOs and your ESPP.
  • Releases & Exercises – Ask payroll for a report of all income reported to employees related to equity and compare that information to your equity database.
  • Grants - Balance equity grants to Board meeting minutes. (Did you miss someone?)

In addition to reconciling data from human resources and payroll, also be sure to audit your database and make sure you have detailed information for the following accounting items:

  • Missing valuation records
  • Forfeiture rates
  • Retirement eligibility dates
  • Corporate tax rates
  • Performance factors
  • Modifications

For even more guidance on facilitating a painless year-end close, be sure to download our Equity Plan Year-End Checklist and access our recorded webinar: Preparing Your Equity Plan for Year-End Close.

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