equity-compensation-advisor

Name: equity-compensation-advisor
Author: Raishin

17stars3forks

How to install equity-compensation-advisor?

raishin/vanguard-frontier-agentic/equity-compensation-advisor

$npx -y skills add Raishin/vanguard-frontier-agentic --skill equity-compensation-advisor

Installs into the current project.

Summary

Multi-jurisdiction equity-based compensation reference framework covering stock options, RSUs, ESPPs, and performance awards under ASC 718 and IFRS 2.

Files · 1

View on GitHub

SKILL.md

1	# Equity Compensation Advisor — Reference Skill
2
3	## Purpose
4
5	Provide the complete multi-jurisdiction framework for equity-based compensation advisory — from award classification and fair value measurement through vesting and expense recognition, modification accounting, tax effects, and country-specific rules.
6
7	---
8
9	## Part 1: Award Classification — ASC 718 / IFRS 2
10
11	### Equity-Classified vs. Liability-Classified Awards
12
13	\| Criterion \| Equity-Classified \| Liability-Classified \|
14	\|---\|---\|---\|
15	\| Settlement \| Fixed number of shares \| Cash or variable number of shares \|
16	\| Cash settlement feature \| Absent \| Present (e.g., SARs settled in cash) \|
17	\| Indexed to own equity \| Yes — no cash alternative \| No — or indexed to something other than own shares \|
18	\| Key standard \| ASC 718-10-25-5 / IFRS 2.8 \| ASC 718-10-25-6 / IFRS 2.34 \|
19
20	Liability-classified awards must be remeasured at fair value each reporting date until settlement. The cumulative mark-to-market is recognised in P&L.
21
22	Modification from equity to liability (e.g., adding a cash settlement feature): Re-measure the award at modification date fair value; any excess over grant-date fair value is recognised immediately if the modification increases fair value, or is deferred if it does not.
23
24	### Employee vs. Non-Employee Awards
25
26	\| Treatment \| US GAAP \| IFRS 2 \|
27	\|---\|---\|---\|
28	\| Employee (and similar service providers) \| ASC 718-10 — measure at grant date fair value \| IFRS 2.10 — measure at grant date fair value of equity instrument \|
29	\| Non-employee (post-ASU 2018-07) \| ASC 718 applied to non-employees; grant date is the date on which performance commitment exists \| IFRS 2.12 — measured at fair value of goods/services received; equity FV used only if goods/services FV cannot be estimated \|
30	\| Key note \| ASU 2018-07 aligned non-employee treatment largely with employee treatment for US GAAP \| IFRS 2 non-employee measurement has always been goods/services-first \|
31
32	---
33
34	## Part 2: Stock Options — Fair Value Measurement
35
36	### Valuation Models
37
38	\| Model \| Use Case \| Key Requirements \|
39	\|---\|---\|---\|
40	\| Black-Scholes \| Plain-vanilla options with service conditions only; no path dependency \| Expected term, volatility, risk-free rate, dividend yield \|
41	\| Binomial / Lattice \| Where early exercise is expected to vary; can model suboptimal exercise; options with performance conditions \| Lattice of stock prices across time steps; exercise boundary calibration \|
42	\| Monte Carlo \| Market conditions (TSR-based, share price hurdles); path-dependent features \| Simulates thousands of price paths; outputs expected payout under the condition \|
43
44	Source: ASC 718-10-55-11; IFRS 2.B5–B6; SEC SAB Topic 14.D
45
46	### Valuation Model Inputs
47
48	\| Input \| ASC 718 Guidance \| IFRS 2 Guidance \|
49	\|---\|---\|---\|
50	\| Expected term \| SAB Topic 14.D: simplified method = (vesting period + contractual term) ÷ 2 for plain-vanilla options; otherwise based on historical exercise data \| IFRS 2.B6: based on expected early exercise behaviour; consider vesting period and contractual life \|
51	\| Volatility \| Historical volatility over a period equal to expected term; implied volatility from traded options if available; peer group volatility for newly public companies (SAB Topic 14.D.1) \| IFRS 2.B7: same considerations \|
52	\| Risk-free rate \| US Treasury zero-coupon rate for a term equal to expected term at grant date \| Government bond yield for a term equal to expected term \|
53	\| Dividend yield \| Expected dividends during expected term; adjust for declared but not yet paid dividends \| Same \|
54
55	---
56
57	## Part 3: RSUs, PSUs, and ESPPs
58
59	### RSUs and PSUs
60
61	RSU grant date fair value: Closing stock price on grant date (or volume-weighted average price per plan terms); no option pricing model required.
62
63	Dividend equivalents: If RSUs accrue dividends as additional shares, the dividend equivalent RSUs are additional awards; if paid in cash, subtract discounted cash flows from grant date FMV.
64
65	TSR-based PSUs (Total Shareholder Return): Market condition → Monte Carlo simulation required. Market conditions are never "improbable" for expense recognition purposes. If the service condition is met, the full target-level expense is recognised regardless of whether the TSR threshold is achieved (ASC 718-10-25-20 / IFRS 2.21).
66
67	Performance condition reassessment: At each reporting date, update the probability assessment for performance conditions. Apply cumulative catch-up adjustments when probability changes. Compare to a market condition which is fixed at grant date.
68
69	Vesting tranche accounting:
70	- Straight-line: Recognise total award expense ratably over the requ

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equity-compensation-advisor

17stars3forks

View on GitHub

How to install equity-compensation-advisor?

raishin/vanguard-frontier-agentic/equity-compensation-advisor

$npx -y skills add Raishin/vanguard-frontier-agentic --skill equity-compensation-advisor

Installs into the current project.

Summary

Multi-jurisdiction equity-based compensation reference framework covering stock options, RSUs, ESPPs, and performance awards under ASC 718 and IFRS 2.

Files · 1

View on GitHub

SKILL.md

1	# Equity Compensation Advisor — Reference Skill
2
3	## Purpose
4
5	Provide the complete multi-jurisdiction framework for equity-based compensation advisory — from award classification and fair value measurement through vesting and expense recognition, modification accounting, tax effects, and country-specific rules.
6
7	---
8
9	## Part 1: Award Classification — ASC 718 / IFRS 2
10
11	### Equity-Classified vs. Liability-Classified Awards
12
13	\| Criterion \| Equity-Classified \| Liability-Classified \|
14	\|---\|---\|---\|
15	\| Settlement \| Fixed number of shares \| Cash or variable number of shares \|
16	\| Cash settlement feature \| Absent \| Present (e.g., SARs settled in cash) \|
17	\| Indexed to own equity \| Yes — no cash alternative \| No — or indexed to something other than own shares \|
18	\| Key standard \| ASC 718-10-25-5 / IFRS 2.8 \| ASC 718-10-25-6 / IFRS 2.34 \|
19
20	Liability-classified awards must be remeasured at fair value each reporting date until settlement. The cumulative mark-to-market is recognised in P&L.
21
22	Modification from equity to liability (e.g., adding a cash settlement feature): Re-measure the award at modification date fair value; any excess over grant-date fair value is recognised immediately if the modification increases fair value, or is deferred if it does not.
23
24	### Employee vs. Non-Employee Awards
25
26	\| Treatment \| US GAAP \| IFRS 2 \|
27	\|---\|---\|---\|
28	\| Employee (and similar service providers) \| ASC 718-10 — measure at grant date fair value \| IFRS 2.10 — measure at grant date fair value of equity instrument \|
29	\| Non-employee (post-ASU 2018-07) \| ASC 718 applied to non-employees; grant date is the date on which performance commitment exists \| IFRS 2.12 — measured at fair value of goods/services received; equity FV used only if goods/services FV cannot be estimated \|
30	\| Key note \| ASU 2018-07 aligned non-employee treatment largely with employee treatment for US GAAP \| IFRS 2 non-employee measurement has always been goods/services-first \|
31
32	---
33
34	## Part 2: Stock Options — Fair Value Measurement
35
36	### Valuation Models
37
38	\| Model \| Use Case \| Key Requirements \|
39	\|---\|---\|---\|
40	\| Black-Scholes \| Plain-vanilla options with service conditions only; no path dependency \| Expected term, volatility, risk-free rate, dividend yield \|
41	\| Binomial / Lattice \| Where early exercise is expected to vary; can model suboptimal exercise; options with performance conditions \| Lattice of stock prices across time steps; exercise boundary calibration \|
42	\| Monte Carlo \| Market conditions (TSR-based, share price hurdles); path-dependent features \| Simulates thousands of price paths; outputs expected payout under the condition \|
43
44	Source: ASC 718-10-55-11; IFRS 2.B5–B6; SEC SAB Topic 14.D
45
46	### Valuation Model Inputs
47
48	\| Input \| ASC 718 Guidance \| IFRS 2 Guidance \|
49	\|---\|---\|---\|
50	\| Expected term \| SAB Topic 14.D: simplified method = (vesting period + contractual term) ÷ 2 for plain-vanilla options; otherwise based on historical exercise data \| IFRS 2.B6: based on expected early exercise behaviour; consider vesting period and contractual life \|
51	\| Volatility \| Historical volatility over a period equal to expected term; implied volatility from traded options if available; peer group volatility for newly public companies (SAB Topic 14.D.1) \| IFRS 2.B7: same considerations \|
52	\| Risk-free rate \| US Treasury zero-coupon rate for a term equal to expected term at grant date \| Government bond yield for a term equal to expected term \|
53	\| Dividend yield \| Expected dividends during expected term; adjust for declared but not yet paid dividends \| Same \|
54
55	---
56
57	## Part 3: RSUs, PSUs, and ESPPs
58
59	### RSUs and PSUs
60
61	RSU grant date fair value: Closing stock price on grant date (or volume-weighted average price per plan terms); no option pricing model required.
62
63	Dividend equivalents: If RSUs accrue dividends as additional shares, the dividend equivalent RSUs are additional awards; if paid in cash, subtract discounted cash flows from grant date FMV.
64
65	TSR-based PSUs (Total Shareholder Return): Market condition → Monte Carlo simulation required. Market conditions are never "improbable" for expense recognition purposes. If the service condition is met, the full target-level expense is recognised regardless of whether the TSR threshold is achieved (ASC 718-10-25-20 / IFRS 2.21).
66
67	Performance condition reassessment: At each reporting date, update the probability assessment for performance conditions. Apply cumulative catch-up adjustments when probability changes. Compare to a market condition which is fixed at grant date.
68
69	Vesting tranche accounting:
70	- Straight-line: Recognise total award expense ratably over the requ

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