New Revenue Recognition Standard’s Impact on Compensation
There’s a new revenue recognition standard that could affect compensation and bonus plans. These plans are made over many years, and the ways of measuring and the timing of recognition of revenue change. Determining compensation incentives that reward real growth will require serious reconsideration. Companies will need to reexamine definitions, calculations, and targets in incentive plans and other performance-based compensatory agreements in light of the new standard, particularly multi-year metrics and targets. Read more here.