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RECKON EASES VESTING RULES Featured

ReckonThe board of directors Reckon, Intuit's former Australian distributor, has loosened the conditions for vesting of long-term incentives. The board based its decisions on the fact that Reckon cut its ties with Intuit in 2012 and began marketing products in its own name. It also factored in the decline in license sales as Reckon made its move to the cloud with applications such as Reckon One. Incentives for 2011 to 2013 were allowed to vest even though the target levels of total shareholder return were not reached.

Because of "shareholder concern", the board laid out details about its decision and the changes in the company in the recently released annual report for 2014. The board decided to look for another metric, other than total shareholder return, but has not set vesting criterion for 2014 through 2015. "The Remuneration Committee is considering the options to come up with a benchmark that aligns with shareholder expectations and the strategic direction of the company," the annual report stated. For 2012 through 2014, the board allowed only 50 percent of entitlements with the rest vesting if certain performance goals are met by the end of June. These goals included the completion of the development road made for Reckon One Evolution which include the development and release of the following: the next generation Reckon One, the client provisioning system and a CRM system.

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