Employee Stock Options (ESOPs) and Restricted Stock: Valuation Effects and Consequences

摘要: In the last decade, firms have increasingly turned to offering employees options and restricted stock (often with restrictions on trading) as part of compensation packages. Some this trend can be attributed entry young, cash poor technology into market, many which use equity because they no choice. However, larger market cap that afford pay used based a way aligning managerial interests stockholder interests. paper, we begin by looking at motives, good bad, for using compensation, trends over few years. We then turn accounting rules, old new, govern how is recorded reported. Finally, consider best incorporate employee - both past prospective discounted flow relative valuation models.