BV504 Understanding Equity Compensation

Webinar Description

In this webinar, Equity Methods team members will be discussing the use and valuation of typical equity compensation instruments.  Instruments including incentive stock options, non-qualified stock options, performance options and market and performance based stock options will be discussed.  For each of these structures, we will cover the common valuation methodologies and input assumptions in addition to tax and financial reporting implications, resulting in a comprehensive understanding of compensation. Our presentation will also focus on the drivers of actual payouts from different types of awards.  Based on these features, viewers will understand how to distinguish between award types and also how best to consider granting appropriate awards for companies at different stages of the life cycle.

Learning Outcomes

Upon webinar completion, the participant will be able to:

• Recognize and differentiate between different award structures;
• Select the appropriate valuation methodology and inputs for commonly seen structures;
• Recognize the key tax, accounting, and valuation implications of common structures; and
• Evaluate the appropriateness of different designs in different circumstances.

Webinar Audience

Any provider looking to gain a broader understanding of the compensation landscape including both valuation and the choices a company makes when selecting equity award structures.

Instructor Information

Josh Schaeffer | Director | Equity Methods

Josh Schaeffer, PhD, is a director and practice leader for Equity Methods’ valuation practice. Josh brings deep academic and practical experience in economics, finance, and statistics to a range of challenges including valuation and compensation. Josh works closely with finance executives across a broad range of public and private firms. He leads teams in valuing instruments and designing models for a wide array of derivative securities pertaining to compensation agreements, private companies, partnerships, earnouts, and guarantees. He also helps companies assess their median employee compensation for purposes of their CEO pay ratio calculation and assists companies with assessing pay equity among other compensation issues. Prior to joining Equity Methods, Josh worked with Deloitte Financial Advisory Services and Cornerstone Research.  In these roles, he focused on valuations and statistical analyses of businesses and investments for financial reporting, tax, consulting, litigation, and arbitration purposes. Josh holds a BA in economics and math from the University of Rochester and a PhD and MBA in finance from the University of Chicago Booth School of Business.

David Outlaw | Director | Equity Methods

David Outlaw, CEP, is a Director at Equity Methods, and a practice leader of both the HR Advisory and Valuation Services Groups. David is an expert in compensation design and modeling, proxy best practices, and fair value measurement and accounting under ASC 718. Since joining the firm in 2009, David has managed many of the practice’s largest and most complex engagements. David plays an integral practice development role throughout the firm, contributing to R&D initiatives, thought leadership, training and development, and special projects. In particular, David has been instrumental in Equity Methods’ build-out of goal setting models, proxy modeling and messaging, modification design and execution, and merger and spin-out transactions. David is widely known throughout Equity Methods for his ability to get to the heart of client problems, execute rapidly against goals, and communicate ideas clearly. For this reason, David plays a leadership role in numerous internal training and mentoring programs and is also one of Equity Methods’ most prolific authors and presenters. David holds a B.S. in Finance and a B.S. in Economics, both from the Barrett Honors College at Arizona State University, and is a Certified Equity Professional (CEP).