Method and system for analyzing and reporting equity compensation

• US 20060212377A1
• Filed: 12/20/2005
• Published: 09/21/2006
• Est. Priority Date: 03/16/2005
• Status: Abandoned Application

• Current Assignee: UBS Ag
• Original Assignee: UBS Ag
• Inventors: Hirsch, Martin, Smith, Kathryn
• Application Number:
  US11/314,932
• Publication Number:
  US 20060212377A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 30/0278 Product appraisal

Abstract

Computer systems and methods for reporting and analyzing grants equity-based compensation (e.g., employee stock option grants). The systems and methods store information regarding grants down to each individual grant level. The system and methods are capable of producing reports “as of” particular dates (i.e., transaction dates, creation dates, and accounting date) that are compliant with Financial Accounting Standards Board standards and other accounting standards governing reporting of equity-based compensation without having to manually process large amounts of data.

Claims

1. A method for analyzing and reporting equity-based compensation comprising the steps of:

storing in a computer data store information regarding a financial calendar for an entity providing equity-based compensation;

storing information in the data store regarding how the entity determines how grants of equity-based compensation are awarded, vested, and/or forfeited in the data store;

storing information in the data store regarding methods that the entity uses to account for equity-based compensation in the data store;

storing transaction information in the data store regarding the entity'"'"'s grants of equity-based compensation;

communicating a request to the data store via a client device to use the information stored in the data store to produce financial accounting reports for the entity'"'"'s grants of equity-based compensation; and

receiving requested financial accounting reports produced from the information stored in the data store.

2. The method of claim 1, wherein the information regarding the financial calendar for the entity providing equity-based compensation includes information regarding whether any fiscal reporting periods should be locked.

3. The method of claim 1, wherein the information regarding the methods that the entity uses to account for equity-based compensation includes information regarding methods that the entity uses to determine fair market value of equity-based compensation grants.

4. The method of claim 1, wherein the transaction information is stored by individual grant and the data store can access transaction information by individual grant.

5. The method of claim 4, wherein the transaction information includes grant type and grant identification information.

6. The method of claim 1, wherein at least some portion of the transaction information is extracted from a separate data store for a system for administering equity-based compensation using a data extract tool.

7. The method of claim 1, wherein the information regarding methods that the entity uses to account for equity-based compensation includes option pricing model information.

8. The method of claim 1, wherein the request to the data store via a client device to produce financial accounting reports includes filters for including information in or excluding information from the financial accounting reports.

9. The method of claim 1, wherein the financial accounting reports received are comply with FASB accounting standards without the need for additional data processing.

10. The method of claim 1, wherein the financial accounting reports include at least one of an Option Roll Forward Report, Options Outstanding Report, Options Expense Report, Actual Forfeiture Report, FAS Disclosure Summary Report, Assumption Detail and Averages Report, Earnings Per Share Report, and Deferred Tax Asset Reports.

11. The method of claim 4, wherein the transaction information includes information regarding exercised options, canceled options, forfeited options, and option prices.

12. The method of claim 4, wherein the transaction information includes transaction dates.

13. The method of claim 4, additionally comprising storing in the data store creation dates and accounting dates for each of the grants of equity-based compensation.

24. The system of claim 1, wherein the financial accounting reports produced include at least one of an Option Roll Forward Report, Options Outstanding Report, Options Expense Report, Actual Forfeiture Report, FAS Disclosure Summary Report, Assumption Detail and Averages Report, and Earnings Per Share Report, and Deferred Tax Asset Reports.

14. A system for analyzing and reporting equity-based compensation comprising:

at least one server computer connected to a computer connected over a communication network to at least one client device, the at least one server computer including application programming;

a data store for analyzing and reporting equity-based compensation, the system being operative for;

receiving identification information from a user;

determining the user'"'"'s entitlement to available features of the system based on the identification information;

sending and receiving requests to the data store via a client device to produce financial accounting reports for the entity'"'"'s grants of equity-based compensation; and

producing the financial accounting reports from the data store in response to the requests; and

sending the financial accounting reports to the user, wherein the data store is programmed to store and process information including;

information regarding a financial calendar for an entity providing equity-based compensation;

information regarding how the entity determines how grants of equity-based compensation are awarded, vested, and/or forfeited in the data store;

information regarding methods that the entity uses to account for equity-based compensation in the data store; and

transaction information regarding the entity'"'"'s grants of equity-based compensation.

15. The system of claim 14, wherein the information regarding the financial calendar for the entity providing equity-based compensation includes information regarding whether any fiscal reporting periods should be locked.

16. The system of claim 14, wherein the information regarding the methods that the entity uses to account for equity-based compensation includes information regarding methods that the entity uses to determine fair market value of equity-based compensation grants.

17. The system of claim 14, wherein the information regarding the methods that the entity uses to account for equity-based compensation includes information regarding methods that the entity uses to determine fair market value of equity-based compensation grants.

18. The system of claim 14, wherein the data store is programmed to store and process the transaction information by individual grant and the data store can access transaction information by individual grant.

19. The system of claim 17, wherein the transaction information includes grant type and grant identification information.

20. The system of claim 14, additionally comprising a data extract tool connected to the data store and a second data store for a system for administering equity-based compensation.

21. The system of claim 14, wherein the information regarding methods that the entity uses to account for equity-based compensation includes option pricing model information.

22. The system of claim 14, wherein the data store is programmed to receive and process the requests to produce financial accounting reports that includes filters for including information in or excluding information from the financial accounting reports.

23. The system of claim 14, wherein the financial accounting reports produced comply with FASB accounting standards without the need for additional data processing.

25. The system of claim 17, wherein the transaction information includes information regarding exercised options, canceled options, forfeited options, and option prices.

26. The system of claim 17, wherein the transaction information includes transaction dates.

27. The system of claim 17, wherein the data store is programmed to store creation dates and accounting dates.