Labor and Employment

Labor Employee Stock Option Valuation

Labor Employee Stock Option Valuation

Many firms object to the FAS 123 standard on grounds that employee stock options are “too hard to value.” The pervasive model—(modified) Black-Scholes—was never intended to value employee stock options. FASB has formed an Options Valuation Group, a small team of advisors that is advising the Board on more sophisticated method(s) and models for determining fair value. For the most accurate valuations, NERA advises firms on how best to customize their compensation structures to reflect such company-specific variables as employee turnover, option exercise patterns, and corporate philosophy on incentives, pay, and benefits. Our experts have also testified about the appropriate valuation of these options at the damages phase of trial.

Name Title Location Phone Email
Dr. Anne Gron Managing Director Chicago +1 312 573 2850 anne.gron@nera.com
Dr. Denise Neumann Martin Managing Director New York City +1 212 345 5296 denise.martin@nera.com
Dr. David Tabak Managing Director New York City +1 212 345 2176 david.tabak@nera.com
Dr. Jon Wainwright Managing Director Austin
Chicago
+1 512 383 4802
+1 312 573 2800
jon.wainwright@nera.com
Jonathan Falk Associate Director New York City +1 212 345 5315 jonathan.falk@nera.com
Dr. Vladimir Starkov Associate Director Chicago +1 312 573 2806 vladimir.starkov@nera.com
Mark L. Berenblut Affiliated Consultant Toronto
New York City
London
+1 416 868 7311
+1 917 475 0020
+44 20 7659 8644
mark.berenblut.affiliate@nera.com
Title Type Author
Snapshot of Recent Trends in Asbestos Litigation: 2017 Update Report Mary Elizabeth C. Stern and Lucy P. Allen
Title Date Type
NERA Economic Consulting Opens Office in Miami, Florida 14 November 2017 Press Release