Compensation Exp (mil) FY (3 Mo)

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