Compensation Exp (mil) FY 1

The biggest component of compensation expense is salary. It also encompasses the value of the stock options due to an employee.

Example
For example, when an employee gets a $10,000 raise, the firm records an extra expense of $2,500 in the first quarter in which the extra money is paid.

For the Pros
Under APB 25 accounting, compensation expense is measured on the first date-called the "measurement date"-on which both the number of shares that an employee is entitled to receive and the exercise price that the employee must pay are known.

Available Time Periods
FY 1: Most recent fiscal year end
Last FY Qtr: Most recent fiscal quarter-end
FY 3 Mo: Most recent fiscal quarter 1
FY Cum (6 Mo): Most recent fiscal quarter 2 displayed on a cumulative basis
FY Cum (9 Mo): Most recent fiscal quarter 3 displayed on a cumulative basis