FMN Accounting

FMN - 2021/March, Seg 1 - Structuring Equity Compensation

Equity compensation is a way to align the incentives of investors and executives. In economics, this is called a principal-agent problem; any time you need to get something done, you ask someone else (employee) to work on your behalf (shareholder investor.) In the "modern" stage of equity compensation, companies look to design appropriate ways to pay their employees using a combination of stock and a wide universe of equity instruments. But is this the only reason to pay in equity, besides alignment of incentives? Josh Schaeffer, director of Valuation and HR Advisory Practice at EquityMethods, starts our segment by addressing that very question.

Learning Objectives:

  • Identify reasons for giving stocks and reasons why equity compensation can be part of a portfolio;
  • Recognize what stakeholders and investors care most about;
  • Determine other financial instruments for consideration and the two primary forms of options; and
  • Identify the key models of restricted stock.

Prerequisites/Advanced Preparation:

Work experience in financial reporting or accounting, or an introductory course in accounting.

Speaker / Author:

Josh Schaeffer, Equity Methods


Price (USD)

Standard: $69.90


Course Code : FMN1388-FM

Release Date : 03/08/2021
Expire Date : 10/14/2022
Credits :
CPE 2.00
QAS 2.00

Length : 1hr 40min
Course Level : Update
Course Type : QAS Self-Study
Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Accounting

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