Terry Adamson

Team: Leadership

Job Title: Partner

Bio: Terry Adamson is a Partner with Infinite Equity and a Fellow of Global Equity (FGE). Terry began his love affair with stock-based compensation over 20 years ago applying actuarial disciplines to minimize the accounting cost of employee equity under ASC718, while also maximizing the perceived value to participants. Terry became one of the premiere experts on Performance Share programs and gained the nickname “Mr. Relative TSR”. Terry continues to focus on performance equity, and the mission to tighten the alignment between pay and performance. Terry is very active in the equity community and has formerly served on the FASB Round Table on Employee Share Options and on the Executive Advisory Committee of the NASPP. Terry currently serves as the Chairperson of the Advisory Board of the Certified Equity Professional Institute (CEP) and the Society of Actuaries taskforce on stock option valuation.

Recent Posts By

Terry Adamson

Explaining Sharing Ratio as Defined from “Pay versus Performance”

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The new executive compensation disclosures under Item 402(v) (“Pay versus Performance”) have created new standardized disclosures that are rich for advanced analytics. This brief will summarize the mathematics to define a “Sharing Ratio” based on these new standardized disclosures. As a quick reminder, some of the data items in the new disclosures are: The pay…

The SEC Pay versus Performance Rules:  Is the Value in an ESPP Included in Compensation Actually Paid?

The SEC Pay versus Performance Rules Is the Value in an ESPP Included in Compensation Actually Paid?

The SEC announced the adoption of its new pay versus performance rules, or Item 402(v) on August 25, 2022.  A detailed summary of the new rules can be found within our Alert found here. However, the intent of this shorter brief is to highlight the treatment of Employee Stock Purchase Plans (ESPPs) within these disclosures.…

SEC Pay Versus Performance: When is the “Vesting Date”?

SEC Pay Versus Performance When is the “Vesting Date”

The SEC announced the adoption of its new pay versus performance rules, or Item 402(v) on August 25, 2022.  A detailed summary of the new rules can be found within our Alert found here. As a reminder, the new rules require all outstanding and unvested awards to be re-valued as of the end of the…

SEC Pay Versus Performance: Mandatory Holds and the Effect on Compensation Actually Paid

SEC Pay Versus Performance Mandatory Holds and the Effect on Compensation Actually Paid

The SEC announced the adoption of its new pay versus performance rules, or Item 402(v) on August 25, 2022.  A detailed summary of the new rules can be found within our Alert found here. However, the intent of this shorter brief is to summarize the effect that a mandatory holding period after vesting has on…

SEC Pay Versus Performance: The Monthly Vesting Challenge

SEC Pay Versus Performance The Monthly Vesting Challenge

The SEC announced the adoption of its new pay for performance rules, or Item 402(v) on August 25, 2022, which requires several new executive compensation disclosures around employee equity. The new rules require all outstanding and unvested awards to be re-valued as of the end of the fiscal year and awards that vest during the…

SEC Pay Versus Performance: Stock Option Valuation Solutions (Part 1)

SEC Pay Versus Performance Stock Option Valuation Solutions (Part 1)

The SEC announced the adoption of its new pay for performance rules, or Item 402(v) on August 25, 2022.  A detailed summary of the new rules can be found within our Alert found here. However, the intent of this shorter brief is to summarize the different approaches for the re-valuation of employee stock options as…

SEC Pay Versus Performance: Stock Option Valuation Solutions (Part 2)

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The SEC announced the adoption of its new pay for performance rules, or Item 402(v) on August 25, 2022.  A detailed summary of the new rules can be found within our Alert found here, or at www.SECPayVersusPerformance.com. As a reminder, the new rules require all outstanding and unvested awards to be re-valued as of the…

ESPP Share Limits and the Valuation Impact

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Ignoring share limits can increase your compensation expense. In ESPP Valuation: 4 Missing Pieces, we highlighted several potential reductions to the valuation of an ESPP share under ASC718. In this brief, we will provide more granular detail on share limitations, specifically focused on: We will provide more specific detail on when the reduction may become…

What You Should Know About Rising Interest Rates and Your ESPP

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As interest rates increase, companies should optimize ESPP valuation by reducing fair value for interest foregone. Most experts anticipate that the United States will continue to increase interest rates during 2022. Over the last 20 years, interest rates have been historically low. The picture below illustrates the last 40 years for the 6-Month Treasury Rates.…

How to Calculate Volatility Using VWAP Price

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VWAP Volatility Infinite Equity’s new approach to calculating historical volatility is to use Volume Weighted Average Prices (VWAPs).  The merits of using this approach can be found in our Research Brief, A New Way to Estimate Volatility.  The intent of this addendum is to illustrate how to calculate volatility using VWAP prices. Before we get…