Instructor for this course

Performance Equity Awards are becoming increasingly more popular, especially with public entities. However, private companies are also adopting policies to incorporate performance awards as part of their overall compensation strategies.

This course is designed to provide you with a fundamental understanding of Performance Equity Awards, when they are most appropriate to implement, and the accounting treatment of these awards (and differences) from both a FAS and IFRS perspective.

We will cover:

  • Specific examples of Performance-Based Equity Awards including restricted stock and options
  • Step-by-step accounting treatments, from valuation to expense entries
  • The most popular Performance-Based Equity Award revisions to plan
  • Less common practices and how these can be difficult to track and account for in the financial statements

Course Series

This course is included in the following series:

10 CoursesFinance for Entrepreneurs

  1. Start-up Equity and Cap Table Basics
  2. Understanding Performance-Based Equity Awards
  3. Accounting 101: How To Do Basic Accounting In One Hour
  4. Learn Finance Principles in 1 Hour
  5. Financial Modeling Using Excel
  6. The Evolution of a Great Spreadsheet Report - How to Effectively Present Numbers in the Business World
  7. Creating a Winning Pitch for Venture Capital Investors
  8. Venture Capital Valuation Analysis Method
  9. Enterprise Risk Management 101
  10. The IPO Preparation Process - Preparing a Company to Access the Public Markets

Learning Objectives

  • Describe what performance equity awards are and how they are used
  • Articulate the most common awards utilized, including the pros and cons
  • Review accounting for performance equity, including FASB and IFRS
  • Review modifications, accelerations and other factors that affect payout vesting
  • Describe new regulatory changes
Last updated/reviewed: October 9, 2018

14 Reviews (79 ratings)Reviews

Anonymous Author
The material was relevant and well laid out. A facts couples with trends kept me engaged and answered questions I was curious about.
Member's Profile
The content was good and very comprehensive, but overall I think they would land better if they were accompanied by mathematical / illustrative examples. It's hard to get the full picture with just words and discussion.
Member's Profile
the content assumed more familiarity with ASC 718 topics. Would have been helpful to include resources for further information of definitions (ie- what Monte Carlo is) sooner in the lecture
Member's Profile
To be honest, I rather read from the textbook instead of listening in. Reading through the slides with slight modification does not really help me to understand the whole thing.
Anonymous Author
Interesting topic, but not all the slides were provided which made it difficult to take notes.
Member's Profile
Good information covering the various combination models of equity awards. Pace was good.
Member's Profile
A great and detailed overview of performance equity - really comprehensive!
Anonymous Author
Links to good black scholes or monte carlo calculators would be beneficial
Member's Profile
Complex topic that requires more examples and not just reading the slides
Member's Profile
very clear and easy to follow, in a complex topic!
Member's Profile
Difficult subject if not versed in it.....
Member's Profile
slide content was a bit confusing
Anonymous Author
good course
Member's Profile


Course Complexity: Intermediate

Prerequisite: Exposure to employee compensation plans

  • An understanding of the basics of FASB 123R (Topic 718) is recommended
  • An understanding of equity based stock options and their utilization as compensation is preferred.


Advanced Preparation: None


Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
Performance Based Equity Awards
  5:50Performance Equity Awards Defined
  16:04Examples of Performance and Market Awards
Valuation and Modifications
  5:32Valuation Methodologies
Changes and Trends
  6:30Recent Regulatory Changes
  7:35Trends in Performance Equity Awards
  4:04Conclusion and Additional Resources
  PDFSlides: Understanding Performance Based Equity Awards
  PDFUnderstanding Performance Based Equity Awards Glossary/Index