Equity Incentive Analytics (EIA) is category creating. Our analysts leverage Gradient's array of proprietary models and databases to sort through the complexities of issues that impact equity compensation. Our objective is to provide early indications of future stock returns by relying on proprietary research and academic evidence demonstrating a relationship between stock performance and equity compensation factors.
Analysts evaluate how companies design their incentives, grant options (including such aspects as pre-SOX back-dating and post-SOX spring-loading), expense and account for them (under new and old accounting regulations) and ultimately evaluate how executives use their incentives. Areas analyzed include exercise decisions and reporting, the use of hedging instruments and 10b5-1 trading plans. Analysts also investigate the compensation committee and related governance issues. We believe that a company's procedures and controls (e.g., decisions about grant timing and accounting treatment) help to determine whether equity incentives are effective at aligning the interest of shareholders and recipients, or are merely motivating executives to control the timing of financial and other information to maximize their personal wealth.
Equity Incentive Analytics reports are delivered via email or can be retrieved via the website. Users can explore our proprietary and timely database of firm specific reports and equity compensation issues that we believe have share price implications for the companies. The website tools provide users with an array of screening features and allow them to set preferences for notification of any updates on any company in their portfolio.