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Posted on: 6/04/2026
From the NASPP Blog: Hidden Cost of a Bad 409A Valuation
A 409A valuation is required for private companies granting stock options, but qualities of these analyses can range significantly. A bad valuation comes with consequences ranging from payout surprises, accounting expense issues, all the way to IRS violations and costly penalties. In “Hidden Cost of a Bad 409A Valuation” published on the NASPP Blog, Josh Schaeffer from Equity Methods and Kelly Neider from CompIntelligence break down what a 409A valuation is, when it’s needed, and what happens if you get it wrong.
