Valuation Considerations in Equity Compensation

Jan 23, 2025

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

Please share your thoughts about the episode - click here to leave us a review  

Want to get involved with future FVS conferences, committees, task forces, or the standing ovation program? Send a message to [e-mail]

 RESOURCES FOR FURTHER EXPLORATION
If you’re using a podcast app that does not hyperlink to the resources, please visit 
https://fvssection.libsyn.com/fvs to access the show notes with direct links. 

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")
• Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies (AKA "PE/VC Guide")

Exclusive content available with AICPA FVS Section membership: Click here to join this active community of your FVS peers. You will get 16 credits of complimentary CPE and access to rich technical content

• Valuation of Privately Held Companies Equity Securities Issued as Compensation
• Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies 

From the FVS Valuation Podcast archives - 409A Valuations – What you Need to Know 

LEARN MORE ABOUT THE FOLLOWING AICPA CREDENTIALS:

Certified in the Valuation of Financial Instruments (CVFI®) – Visit the home page and check out the CVFI infographic

Accredited in Business Valuation (ABV®) – Visit the home page and check out the ABV infographic

Certified in Financial Forensics (CFF®) - Visit the home page and check out the CFF infographic

This is a podcast from AICPA & CIMA, together as the Association of International Certified Professional Accountants. To enjoy more conversations from our global community of accounting and finance professionals, explore our network of free shows here. Your feedback and comments are welcomed at [e-mail]