It seems like all I hear about in the news these days is the inverted yield curve and how this is an indicator that a recession may be on the horizon. An inverted yield curve occurs when short-term interest rates are higher than long-term interest rates. This has preceded recessions in the past (e.g., see the article “The Bond Market Is Trying to Tell Us Something (Worry)” in the NY Times).
All of this talk about recessions has reminded me that recession-proofing equity awards was a topic in our January webcast “Hot Topics in Stock Compensation.” Takis Makridis of Equity Methods suggested five questions to ask about your equity program:
Takis discussed specific strategies to mitigate the impact of volatility in the marketplace, including using relative awards, longer or shorter performance horizons, dollar cost averaging, and cash awards. The webcast recording and transcript is available on the NASPP website if you want to learn more.
The panel “Hot Topics in Stock Compensation” will be updated and offered again at the 27th Annual NASPP Conference in New Orleans in September. Unless the yield curve straightens out in short order, I’m sure this topic will be discussed during the panel.
myStockOptions.com is offering their one-day course, Financial Planning for Public Company Executives and Directors, on June 18 in San Francisco. I will be giving a short presentation on trends in equity awards.
This course will help financial advisors and stock plan professionals understand current trends in equity compensation and will feature a faculty of industry experts who will discuss the following topics:
This is a great course for stock plan professionals who want to better understand and incorporate financial planning concepts into their stock plan education program or who need to understand the strategies executives use to manage their equity awards. Enter the coupon code THREE when you register to receive $300 off the registration fee.
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