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 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")

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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

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Valuation Considerations in Equity Compensation