Understanding Volatility in Stock-Based Compensation Valuation: A Guide to ASC 718 and SEC SAB #107
Volatility is one of the key assumptions that goes into the valuation of stock-based compensation. This brief will reference literature from ASC 718, SEC Staff Accounting Bulletin #107, and Infinite Equity’s research.
Understanding Volatility: A Key Driver in Option and Performance Award Valuation
Volatility is one of the most impactful assumption inputs when valuing employee equity. This summary highlights the impact of volatility on different types of employee equity.
Rigor Testing – What Are Appropriate Risks of Forfeiture
What Are Appropriate Risks of Forfeiture for Performance Equity? Performance-based compensation makes up a significant portion of executive pay in the form of both short and long-term incentives. However, it can be quite challenging to develop performance goals that are reasonable to the executive team and have sufficient rigor for investors, regulators, and corporate governance…