The value of equity-based compensation in a private company is used for financial
reporting, tax, and transactions. The selection of an appropriate volatility factor is needed
to arrive at an accurate value. This discussion provides an overview of volatility and how it is
used to value equity compensation in a privately owned company.
This paper discusses the valuation of equity compensation in privately owned companies. The subjects presented in this paper include: an overview of equity plans, forms of equity compensation, and valuation methods.
The valuation of stock options, restricted shares, or other types of equity compensation in private companies can present some challenges. To help you avoid problems, this article offers a list of some key factors you should watch for.
SEC Comments on Stock Compensation
A Different Standard for Private Companies
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