Custom solutions for the most difficult compensation instrument valuations

Each year, equity compensation moves toward more complex instrument designs. These new approaches often include market or performance conditions, and for these designs, traditional simple Black-Scholes valuations are frequently insufficient or non-compliant.

Equity Methods’ Advanced Valuations address these uniquely difficult valuation challenges.

Our Professional Services team provides custom model development to value compensation awards that cannot be calculated in a simple Black-Scholes framework. Under FAS 123R and IFRS 2, awards with market conditions are prohibited from being valued in this way and instead require Monte Carlo simulation or a custom-built lattice model. Our world-renowned team of PhDs and valuation consultants works closely with clients to develop, explain and support the optimal valuation for these unique situations.