The Core Disciplines of Equity Compensation

1) Corporate and Securities Law

• Effects of resale and registration requirements and exemptions of the Securities Act of 1933 as applied to privately-owned and publicly-held companies
• Securities Exchange Act of 1934 requirements for periodic reporting, proxy solicitation, tender offers, and insider trading
• Characteristics and authority of public and private companies - board of directors, business entities, blue sky laws
  

2) Accounting

Accounting implications to equity compensation of:

• Financial Accountings Standards Board Statement No. 123 Revised ("SFAS 123R")
• Accountings Principles Board Option No. 25 ("ABP 25")
• Financial Accountings Standards Board Interpretation No. 28 ("FIN28")

3) Taxation

Implications of taxation rules surrounding equity compensation plans:

• Internal Revenue Code Nos. 421, 422, 423, 424
• Knowledge of income tax collection and deduction rules applicable to companies and to recipients of equity compensation
  

4) Equity Plan Design, Analysis, and Administration

• Awareness of the different equity compensation vehicles and requirements
• Knowledge of various processes and procedures to accomplish equity compensation goals
• Understanding of standard and unique equity compensation plan provisions and documents and their effects to recipients and the company
• Insight into shareholder concerns and considerations with respect to equity compensation

Functional Areas and Associated Knowledge

Functional Area Level 1 percentage weighting Level 2 percentage weighting Level 3 percentage weighting Equity Plan Design, Analysis, and Administration 30% 26% 30% Accounting 12% 16% 20% Corporate and Securities Law 25% 29% 26% Taxation 33% 29% 24%