Terry Adamson

Team: Leadership

Job Title: Terry Adamson

LinkedIn: https://www.linkedin.com/in/terryadamson/%20

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.

Posted: May 13, 2022

Recent Posts By

Terry Adamson

ESPP Share Limits and the Valuation Impact

By Terry Adamson
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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

By Terry Adamson
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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

By Terry Adamson
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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…

Treatment of Equity for Retirement Eligible Employees

By Terry Adamson
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Retirement Eligible Employees and LTI: Accounting and Valuation Considerations Background Many companies allow for retirement eligible employees to continue to earn equity awards after retirement when meeting defined retirement criteria.  Sometimes the retirement criteria are based on an age, or service, or a combined total of age and service.  As a reward for their retirement…

Closing Prices Have Fat Tails

By Terry Adamson
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VWAP Volatility Infinite Equity is introducing innovative new thought leadership on the financial theory around determining historical volatility for purposes of ASC718. Introduced in the Research Brief, A New Way to Estimate Historical Volatility, and published collectively at www.VWAPVolatility.com. The intent of this Research Brief is to study closing prices compared against the tick-by-tick transaction…

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