Valuation Considerations in Equity Compensation

Derivatives such as options have been used to reward employees for many years, and executive pay packages often include features of complex derivative securities such as options and restricted stock with vesting schedules based on various contingencies.  Join us for a deeper look of what’s “under the hood” in the relevant valuation techniques such as lattice models and Monte Carlo simulation, and how these relate to regulations such as ASC 718 and the new Pay versus Performance (“PvP”) requirements for proxy statements. 

•    Relevance of Internal Revenue Code Section 409a and ASC 718 valuation considerations
•    Case studies in uses and misuses of equity compensation
•    “Pay vs Performance”, clawback provisions, and other regulatory considerations   

Continue reading for key resources available at AICPA-CIMA.com to improve your valuation analyses.

Guests: 
Josh Schaeffer, PhD and Managing Director,  Equity Methods, LLP 
Mona Paushenwein, Consultant, Equity Methods, LLP
Host: Howard Mah-Lee, Senior Manager, AICPA Valuation Services Section

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 RESOURCES FOR FURTHER EXPLORATION
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409a Valuations and Other Complex Securities (live session from 2021 AICPA & CIMA Forensic & Valuation Services Conference with Antonella Puca, BlueVal Global, and Oksana Westerbeke, Grant Thornton)

Accounting and Valuation guides from AICPA  If you are an AICPA-FVS Section member see below for free access to these guides

• Valuation of Privately Held Companies Equity Securities Issued as Compensation (AKA "Cheap Stock Guide")
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