New SEC CEO Pay Rule Creates Tricky Stock Accounting Issues

The money paid to top corporate executives will get more sunlight this spring as public companies comply with new SEC pay-versus-performance rules for the first time.

Behind the scenes, however, accountants helping companies prepare their proxy statements are tackling some complex questions, including how to pinpoint the value of stock awards.

“It’s a lot of math; it’s a lot of tables; it’s a lot of tracking; and a lot of valuation specialists, particularly if you have very complicated awards,” said Alan Wilson, counsel at WilmerHale.

Companies already must disclose what they pay their top executives in their annual ...