Equilar and Equity Methods Collaborate on new Pay for Performance Tool

An Equilar press release announced its recent partnership with Equity Methods that will expand the suite of products on the Equilar platform to assist companies as they prepare to comply with the SEC’s new Pay Versus Performance rules. The new tools include a Monte Carlo Simulator which will help organizations model the complicated process of valuing relative TSR-based equity awards, a key component of the disclosure table. As many companies will not have the internal resources to build their own simulations, Equilar clients will be able to “leverage Equity Methods-designed models to get rapid estimates of relative TSR award values as part of their pro-forma modeling and planning process” according to Takis Makridis, President and CEO of Equity Methods.

Equilar has also added other features to its Pay for Performance products to prepare subscribers for proxy disclosure compliance:

• Metric Identification: Correlation analysis between TSR, net income and over 100 additional metrics.
  
  
• TSR Calculation: Now includes market cap weighted calculation.
  
  
• Compensation Actually Paid (CAP): Contains Black-Scholes and Binomial option valuations needed to calculate CAP.
  
  
• Absolute Alignment: Modeling to support both graphic and narrative pay and performance relationships.

These products are available December 16^th to Equilar clients and a joint webinar will be held on December 14^th that will include a demonstration of the Monte Carlo Simulator and a review of how to use the new features.