Download or read book Valuing Employee Stock Options written by Johnathan Mun and published by John Wiley & Sons. This book was released on 2004-10-13 with total page 335 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive guide to understanding the implications andapplications of valuing employee stock options in light of the newFAS 123 requirements Due to the new requirements of the Proposed Statement of FinancialAccounting Standards (FAS 123) released by the Financial AccountingStandards Board (FASB)-namely the fact that employee servicesreceived in exchange for equity instruments be recognized infinancial statements-companies are now scrambling to learn how tovalue and expense employee stock options (ESOs). Based on authorDr. Johnathan Mun's consulting and advisory work with the FASBconsulting projects with several Fortune 500 firms, ValuingEmployee Stock Options provides readers with a comprehensive lookat this complex issue. Filled with valuable information on binomial lattice andclosed-form modeling techniques, Valuing Employee Stock Options canhelp financial professionals make informed decisions whenattempting to ascertain the fair-market value of ESOs under the newrequirements. Johnathan Mun, PhD, MBA, MS, CFC, FRM (San Francisco, CA), is VicePresident of Analytical Services at Decisioneering, Inc., themakers of Crystal Ball analytical software. He is also the authorof Applied Risk Analysis (0-471-47885-7), Real Options Analysis(0-471-25696-X), and Real Options Analysis Course (0-471-43001-3),all of which are published by Wiley.
Download or read book Market Valuation of Employee Stock Options written by David Aboody and published by . This book was released on 1995 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Founder s Pocket Guide Stock Options and Equity Compensation written by Stephen R. Poland and published by 1x1 Media. This book was released on 2018-10-15 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: This highly visual guide offers startup founders and employees a “nuts and bolts” view of how stock options and other forms of equity compensation work in early-stage startups. Throughout this guide numerous mini-infographics illustrate the key concepts founders need to know and show the relationships between stock option grants, vesting timelines, exercise timing, and associated tax implications. In detail, this Founder’s Pocket Guidewalks entrepreneurs though the following elements: Startup Equity Compensation Basics: Sharing Equity with Your Team The first section of this guide is structured to help founders build a base of understanding about the numerous definitions and terminology related to startup equity compensation and stock options. Topics covered include: · A brief refresher on startup equity in preparation for delving into the details of stock options and other forms of equity compensation. · A quick review of how startup equity ownership is shared between the various stakeholder of a startup including the founders, investors, and employees. · The fundamental mechanics of how startup stock options work, including option grants, exercising, vesting, and selling of stock shares. · A detailed review of equity compensation terminology and definitions, such as vesting, strike price, fair market value, and spread. · An explanation of each of the most common types of equity compensation including Restricted Stock, Incentive Stock Options, Non-Qualified Stock Options, and Restricted Stock Units. Equity Compensation Types in Detail The next section of this guide reviews each of the most common types of equity compensation, including detailed components such as tax implications, vesting and exercise parameters, and other IRS rules governing the ownership of each equity type. The following equity compensation types are covered: · Restricted Stock (RS) · Incentive Stock Options (ISOs) · Early Exercise Incentive Stock Options (EE-ISOs) · Nonstatutory Stock Options (NSOs) · Early Exercise Nonstatutory Stock Options (EE-NSOs) · Restricted Stock Units (RSU) Establishing Your Startup’s Equity Plan In the final part of this guide we dig deeper into the key areas founders need to consider when developing an equity plan for their startup, with specific focus on the following issues: · When to implement a formal equity incentive plan · What factors to consider when deciding how large the equity compensation pool should be · How to decide employee equity award amounts at the different stages of a startup’s lifecycle · What general steps to take to establish a equity compensation plan for your startup · What key information that must be communicated to employees about equity compensation awards · Which step-by-step calculations are needed to truly understand equity ownership percentages and value · How IRS and SEC rules impact private company equity compensation
Download or read book Market Valuation and Employee Stock Options written by Ge Zhang and published by . This book was released on 2003 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates a market-valuation-based hypothesis for employee stock options (ESOs). It examines how market valuation has affected the decision to grant ESOs, the amount of options granted, and the distribution of options among executives and rank-and-file employees. I find strong empirical evidence that firms with high market valuation and high probability of future overvaluation are more likely to adopt ESOs and grant more options to their employees. Furthermore, when top executives perceive the current market valuation is high, they grant a smaller portion of options to themselves relative to rank-and-file employees. All these results are consistent with the theoretical predictions from the model of Zhang (2002), which argues that ESOs can be used as a method to sell overvalued equity.
Download or read book The Complete Guide to Employee Stock Options written by Frederick D. Lipman and published by Prima Lifestyles. This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Numerous private and public companies offer stock option plans every year to motivate, retain, and reward employees. But implementing the right stock option plan can be a complex and daunting undertaking, without the proper guidance.The Complete Guide to Employee Stock Optionsunravels the mystery of creating a meaningful equity compensation plan for employees that is favorable for the business. Author and attorney Frederick D. Lipman describes in complete detail the legal, operational, and motivational aspects of developing a stock option program, whether it's for the new start-up looking to attract top talent or the venerable company looking for ways to reward its best performing employees. Readers will discover how to: * Understand the pros and cons of different option plans* Implement the right plan to meet the company's future plans* Motivate key employees with equity compensation* Minimize the risk of losing equity in a volatile market* And much moreThis book also includes useful information for employees who want to understand what their stock options mean and how to maximize their profitability. Complete wi
Download or read book Getting Started In Employee Stock Options written by John Olagues and published by John Wiley & Sons. This book was released on 2010-01-14 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: An A to Z guide for understanding employee stock options (ESOs). In Getting Started In Employee Stock Optionsauthors John Olagues and John Summa provide a full understanding of ESOs and demonstrate how to make the most of them. Page by page this author team, a highly experienced options market maker and a professional trader, share essential information that you're probably not hearing anywhere else. This book contains the keys to managing and hedging ESO opportunities in addition to important tax and valuation guidance appropriate for the highest executives to the non-officer managers and the newly arrived employee. Examines essential ESO issues, including tax consequences, risks, and industry pitfalls Written by an experienced pair of stock option experts Enables employees and executives to make more informed decisions regarding their stock options grants Written in a straightforward and accessible style, Getting Started In Employee Stock Options will help protect the value of your options, help you avoid costly mistakes, and allow you to take advantage of certain friendly tax rules. Some of the world's foremost authorities on options have endorsed Getting Started inEmployee Stock Options.
Download or read book Market Valuation Management of Employee Stock Option Expense Evidence from Taiwan written by 洪子茵 and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Equity Alternatives written by Joseph S. Adams and published by . This book was released on 2012-01-01 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Understanding Employee Stock Options Rule 144 Concentrated Stock Position Strategies written by Travis L. Knapp and published by iUniverse. This book was released on 2001-02-20 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: Knowledge is NOT an Option How much of your net worth is concentrated in one stock? Are you concerned about the volatility of the market? Would you like to be more diversified? Do you understand how a variable prepaid forward contract, a protective put contract, or a zero-premium collar can help to protect your concentrated position? Do you need more liquidity? Are you an insider or affiliate that would like to reduce your risks without actually selling your stock? Are you interested in reducing your taxes by nearly half? Do you know the key differences between non-qualified stock options and incentive stock options that will affect how much tax you pay? Will Alternatives Minimum Tax affect you upon exercise of your incentive option? Are you familiar with the benefits and risks of making a Section 83(b) election? Do you know what transactions are considered a disqualifying disposition or a constructive sale? Can knowing the answers to these questions make you more confident and financially secure?
Download or read book The Stock Options Book written by Scott S. Rodrick and published by . This book was released on 2001 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Consider Your Options written by Kaye A. Thomas and published by . This book was released on 2003-12 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: Consider Your Options is the leading book on how to handle all the popular forms of equity compensation: stock grants, nonqualified stock options, incentive stock options and employee stock purchase plans. The 2004 edition reflects the latest changes in the tax law and other developments.
Download or read book Market Valuation and Employee Stock Options written by and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates a market-valuation-based hypothesis for employee stock options (ESOs). It examines how market valuation has affected the decision to grant ESOs, the amount of options granted, and the distribution of options among executives and rankand- file employees. I find strong empirical evidence that firms with high market valuation and high probability of future overvaluation are more likely to adopt ESOs and grant more options to their employees. Furthermore, when top executives perceive that the current market valuation is high, they grant a smaller portion of options to themselves relative to rank-and-file employees. All these results are consistent with the market-valuation rationale for ESOs, which argues that firms use ESOs as a method to sell overvalued equity.
Download or read book Employee Stock Option Purchase Plans written by Ken E. Little and published by Alpha Books. This book was released on 2000 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: If you find yourself sorting through a maze of vesting schedules, option plans, investing data and tax advice, this book is for you. It will give you the information you need, defining terms and concepts and explaining how most ESOPPs work. While you will still need the specifics of your own corporate plan, this guide will help you know what questions to ask and how to understand the answers. From explaining stock options to risk assessment, Alex will walk you through the exciting and complex world of employee stock options.
Download or read book An Empirical Analysis of Stock Option Valuation Methodologies in Closely Held U S Corporations written by Mike Fred Balm and published by Universal-Publishers. This book was released on 2009-05 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: The introduction of fair value accounting for stock options has required private companies to apply stock option valuation methodologies that were designed to be applied to their public counterparts. The two recommended methodologies, the Black-Scholes formula and the Binomial Lattice model, require the valuator to provide an input for estimated volatility; for private companies that do not have a trading history there is limited guidance regarding the determination of volatility, which results in diverging and incorrect estimates. Based on a sample representing 178 companies who filed and completed an IPO in 2006, this study analyzed the accuracy of the recommended valuation methodologies when applied to closely held US corporations. The study outlines the importance of volatility to the value of the options and proceeds to document, by comparing the private (pre-IPO) and public (post-IPO) data, that in 51% of the cases the volatility was either over- or under-stated by more than 10%. In addition, the study shows a bias towards overstatement in the less than 10% variance group. The study further demonstrates that a marginal change in volatility has a significant impact on the company's total stock-based compensation expense and consequently misstates earnings.
Download or read book Leveraged ESOPs and Employee Buyouts written by Scott S. Rodrick and published by . This book was released on 2000 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Heterogeneous Beliefs and Employee Stock Options written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses a market valuation model to explore why firms grant employee stock options. When insider managers and outside investors have different opinions about the future prospects of the firm, employee stock options can be used to capture future investor overvaluation and to save employee compensation costs. Options can enhance the stock value for existing shareholders if the difference in opinion is highly volatile. The equilibrium option grant is positively correlated with both the perception error of investors, and the volatility of this error, as well as the correlation between investors 19 error and firm fundamental value. The model provides implications on the cross-sectional differences in option grants, and these implications can be examined empirically. 1 Introduction An employee stock option is an agreement between a firm and its employees under which the employees can buy a specified number of shares of stock at a specified price. Over the past decade, the use of employee stock options has been rising.
Download or read book OECD Tax Policy Studies The Taxation of Employee Stock Options written by OECD and published by OECD Publishing. This book was released on 2006-02-06 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: Employee stock option plans have become a common component of remuneration packages in multinational enterprises. This publication presents and examines the many important tax issues that arise for beneficiaries and companies.
