PCCC Mulling Whether to Carve Out Rules on Profits Interest Compensation
The Private Company Council (PCC) said it would wait for more FASB staff research on profits interest before deciding whether to tackle a project on the topic—a tricky but popular equity-type compensation offered by limited liability companies (LLC) and partnerships. Confusion has bubbled up because there is no explicit definition for profits interest under GAAP and agreements with those items vary, according to the PCC’s June 25 discussions. “It has become more prevalent since private equity firms have started using these on a pretty regular basis—we see it a great deal in our clients that are private equity owned,” PCC Chair Candace Wright said. “I know defining something in the codification is difficult, but if we could get to some sort of definition for profits interest under GAAP, that would be helpful as well so that when you’re looking at contracts and transactions, you would have a better understanding to know whether or not if they were in the scope or out of scope of this type of transaction.”
Board Chairman David Vaudt Bows Out
GASB Chairman David Vaudt will relinquish his seat on the board to Joel Black—a shift in a key post that comes amid unpredictable times for cities and states grappling with the COVID-19 crisis. Vaudt, who leaves the board due to term limits, completed a seven-year term that ended June 30. The board’s top priority “during this difficult, uncertain period” has been to help stakeholders navigate the evolving landscape, Vaudt told Thomson Reuters in a June 29 email. “The Board and staff have done that in several ways,” he said. “We developed an Emergency Toolbox to help stakeholders quickly identify the GASB’s authoritative guidance that could be relevant in the current circumstances.” Vaudt was the fourth GASB Chairman since its inception in 1984.
Senator Roberts’ Former Chief of Staff Named PCAOB Director of External Affairs.
The PCAOB said it has appointed Jackie Cottrell director of its office of external affairs, the division responsible for the audit oversight board’s communications, government affairs, and outreach efforts. Cottrell was chief of staff to Senator Pat Roberts, a Kansas Republican, for 18 years. Cottrell replaces Torrie Matous at the PCAOB, who was appointed chief of staff in March. Erin Dwyer had been serving as acting director over the past several months amid the PCAOB’s efforts to communicate with companies during the COVID-19 crisis. “The Board remains deeply committed to enhancing our external engagement and communications, and Jackie brings many years of proven leadership and expertise in these areas,” PCAOB Chairman William Duhnke said in a statement. “We are fortunate to have her on our team, and we look forward to working with her as we continue to advance our strategic priorities.”