Check-in/breakfast/networking: 7:30 a.m. until 8:00 a.m.
1st presentation starting at 8:00 a.m. going until 8:45
2nd presentation from 8:45 until 9:30 a.m
Session 1: Pay Versus Performance: SEC Proposed Disclosure Rules
The concept of Pay Versus Performance isn’t new, although recently, the SEC has added to this changing landscape by proposing disclosure requirements under the Dodd-Frank Act that will require companies to disclose CEO and Named Executive Officer pay as well as relative Total Shareholder Return (TSR) performance, with a narrative on the relationship. Although the new disclosure rules are not final, there are some key differences from other disclosure requirements, such as the Summary Compensation Table. There are also added complexities, with a focus on “compensation actually paid” and market cap weighted TSR performance. Join our speakers as we discuss the details of the proposed rules, as well as major considerations and potential roadblocks. From the technical nuances of valuing vested equity awards to the narrative explaining the relationship of pay and performance, we will prepare you for at least one future obstacle in this ever-changing executive compensation landscape.
Session 2: Valuation 101 - Best Practices and Trends in Equity Valuation
This presentation will give a basic education on the requirements for valuing employee stock options under ASC Topic 718, and modeling techniques such as Black-Scholes, lattice modeling, or Monte Carlo simulation. We will discuss the core assumptions within those modeling techniques such as expected volatility, exercise behavior, dividend yields, risk-free rate and other assumptions. We will explore how the current economic environment is forcing companies to reexamine their modeling techniques and assumption selections.
Registration: This meeting is free of charge. To reserve your seat, send an RSVP email to firstname.lastname@example.org
Presenters: Our presenters will be Dan Coleman and CJ Van Ostenbridge from AON
Dan Coleman, CPA - Dan is an Associate Partner in Chicago, where he serves as the Midwest and Canadian market leader for Aon’s equity-based compensation valuation practice. Dan has more than 20 years of experience in plan design, valuation, tax, financial accounting, and disclosure issues related to all types of executive and broad based compensation programs for public and privately held companies. Dan specializes in the valuation of employee options and performance shares under Accounting Standards Codification Topic 718 using Black-Scholes, lattice-based models, and Monte Carlo simulations; valuation of contingent consideration, common and preferred stock, debt, stock warrants, and derivatives embedded in convertible debt and convertible preferred stock; and tax and financial accounting issues related to equity based compensation. Dan was a member of the committee that updated the AICPA’s practice aid titled Valuation of Privately-Held-Company Equity Securities Issued as Compensation. Additionally, Dan is a co-author of a book published by the National Center for Employee Ownership titled Equity Alternatives: Restricted Stock, Performance Awards, Phantom Stock, SARs, and More. Dan has been invited to speak on valuation and accounting issues at numerous industry events and conferences hosted by the AICPA, the National Association of Stock Plan Professionals, the American Society of Appraisers, the University of Illinois, and Big 4 accounting firms.
CJ Van Ostenbridge, CEP - CJ Van Ostenbridge is a Consultant with Aon’s employee equity-based compensation valuation practice. In his current role, CJ works directly with clients to assist them with meeting the requirements of ASC Topic 718. This includes developing economic assumptions, valuation using Black-Scholes and Monte Carlo simulation, and properly accruing expense for a variety of equity-based compensation vehicles. CJ holds a Bachelor of Science in Mathematical Decision Sciences from the University of North Carolina at Chapel Hill. CJ has presented at various NASPP chapter meetings and is a Certified Equity Professional (CEP).