Valuing Stock Compensation Under Sect. 409A
Reaching the Best Decisions in Allocating Value to Stock Options and Stock Appreciation Rights
Recording of a 110-minute CPE webinar with Q&A
This seminar will analyze scenarios that frequently arise in valuing and allocating value among common and preferred stock options and rights. The panel will offer new approaches to making optimal valuation decisions for employee stock compensation.
- Background of issue
- 2004 passage of Sect. 409A to set rules for deferred compensation plans
- April 2007 passage of final IRS interpretive regs
- 2004 AICPA guidance
- Rules for exempting stock options from 409A at issuance
- Exempt if issued by qualified issuer, exercisable for issuer’s common stock
- Determining fair value of stock compensation
- For pre-Jan. 1, 2005 options
- For options issued between Jan. 1, 2005 and Jan. 1, 2009
- For post-Jan. 1, 2009 options
- Reasonable valuation method that considers all facts and circumstances
- Practical difficulties in stock valuation decisions
- Allocating value among different categories of stock/options/rights
- Evaluating all outstanding options vs. evaluating only newly issued options
The panel will arm you to make better valuation decisions in these and other relevant areas:
- Structuring exempt stock compensation: Finding specific exemptions under Sect. 409A or structuring options in a way that complies.
- Determining fair market value: Navigating different standards, depending on the issuance date, for options granted before Jan. 1, 2009.
- Making solid valuation decisions now: Deciding if a current valuation method is reasonable.
Director of Business Valuations
Greenstein Rogoff Olsen & Co.
He has more than 19 years of experience in finance and accounting, and 14 years in business valuations. He previously... | Read More
He has more than 19 years of experience in finance and accounting, and 14 years in business valuations. He previously worked for companies including Titan Value Equities Group and Transamerica Financial Services, spent three years as a valuation analyst at an ESOP consulting firm, and founded a stock option software company.Close
Partner, Compensation and Employee Benefits Group
His practice covers executive and stock-based compensation, ESOP plans, benefit issues in M&A, pension and welfare... | Read More
His practice covers executive and stock-based compensation, ESOP plans, benefit issues in M&A, pension and welfare benefit plans, and fiduciary responsibility issues under ERISA.Close
Partner, Manager of Labor, Employment and Benefits Group
Nutter McClennen & Fish
He works with corporate clients on design, amendment and compliance projects related to retirement and deferred... | Read More
He works with corporate clients on design, amendment and compliance projects related to retirement and deferred compensation arrangements, and in insured and uninsured health and welfare programs. He has written and spoken on Sect. 409A compensation arrangements for various publications and seminars.Close
Morrison & Foerster
His practice specializes in executive compensation and employee benefits, regularly advising companies on all aspects... | Read More
His practice specializes in executive compensation and employee benefits, regularly advising companies on all aspects of equity and cash-based compensation and the evolving 409A requirements. He is a frequent speaker on executive compensation and employee benefit topics.Close