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Western PA & Ohio – Chapter Webinar (June 17, 2020)

June 17, 2020

3:00 - 4:00 p.m.


 
Into the Deep End: Share Pool Management in a Volatile Market

Speaker Information

Nathan O’Connor:
Nathan O’Connor is a Managing Director at Equity Methods, a consultancy in Scottsdale, Arizona that helps hundreds of public and private companies model, value and account for equity compensation and other complex securities. As the first point of contact for prospective clients, Nathan brings over a decade of quantitative consulting experience to bear in collaborating with the Valuation, Reporting, and HR Advisory practices within Equity Methods to ensure that prospective clients’ needs are met. As a liaison between the company and the broader compensation community, he shares best practices at industry events throughout the country and through publishing technical articles. Prior to his current role, Nathan served as the national valuation practice leader at Equity Methods, where he oversaw all client delivery, operations, and R&D in support of more than 400 public and private clients, in addition to directly serving the compensation consultants and senior executives of several Fortune 50 companies. A technician at heart, Nathan is a Certified SAS Base Programmer who has taught financial management in the University of Arizona’s MBA program and internal derivatives workshops at Equity Methods. He previously served on the boards of the Las Vegas and Phoenix chapters of NASPP. He currently serves on the board of the Arizona chapter of Financial Executives International and the advisory board of the Certified Equity Professionals Institute at Santa Clara University.
 
Josh Schaeffer
Josh Schaeffer is a director and practice leader for Equity Methods’ valuation practice. He leads the delivery of valuation and advisory services related to complex securities. Josh takes some of the most complicated financial instruments around and breaks them down so that anyone can understand them. These include a wide array of derivative securities pertaining to compensation agreements, private companies, partnerships, earnouts, and guarantees. Other areas of expertise include business investments and employee compensation awards. Josh is familiar with the approach external auditors take to these instruments, building that knowledge into the solutions he builds for clients and often communicating with auditors on their behalf.
Besides complex securities, Josh brings his academic and practical experience in economics, finance, and statistics to a range of other challenges. One is helping companies assess pay equity. Another is determining median employee compensation for purposes of CEO pay ratio calculation. He enjoys solving unique problems and mentors employees who share this aptitude. Josh works closely with finance executives across a broad array of public and private firms. His clients range from early-stage, pre-IPO upstarts to some of the largest public companies in the world. He’s a frequent presenter for the National Association of Stock Plan Professionals, the American Society of Appraisers, and other industry organizations. Prior to joining Equity Methods, Josh worked with Deloitte Financial Advisory Services and Cornerstone Research. In these roles, he focused on valuations and statistical analyses of businesses and investments for financial reporting, tax, consulting, litigation, and arbitration purposes.

Event Details

Down markets can empty share pools faster than you can ask where the drain plug went. In this session, we will discuss techniques for share pool management in today's volatile and uncertain market.

This session will include scenario modeling and planning, consideration of different award types, use of cash rather than equity, implementing option exchange programs, and more. Anyone with responsibility over stock plan management or equity program design will take away actionable knowledge in balancing the competing needs of different stakeholders in times like these.

During this session we will discuss:
  • How share pools work and best practices in tracking share burn
  • Examples of stock price volatility resulting in excessively fast share pool depletion
  • Ways to maintain your long-term incentive plan even if you run out of shares
  • Alternative grant calibration approaches to mitigate pool depletion
  • Alternative award vehicles that conserve or avoid using equity altogether
 

About Us

The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.

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