Compensation Expense Policy

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Calculate Compensation Expenses Using the Black-Scholes Model

This policy establishes guidelines and procedures for calculating compensation expenses for the employee stock purchase plan (ESPP) using the Black-Scholes model.

In this sample, procedures for actual expenses include the senior accountant logging into the online equity administrator web admin system, running the online equity administrator option expense report from the online equity administrator financials online (FOL) section of web admin (for options and SARs only) by entering the specific report parameters (e.g., dates, award type, etc.), and reviewing the online equity administrator option expense report for reasonableness.

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