SHARE-BASED COMPENSATION

Share-based compensation comes in many forms and has particular complexities as to the specific method of valuation. Whether it be stock-options, restricted stock, phantom stock, warrants or other types of structures, Houlihan has experts who are experienced with assisting our clients measure the cost of these incentives in their P &L.

Depending on the structure of the share-based compensation, Houlihan has sophisticated quantitative tools to model out the potential share values. These tools range from modified Black-Scholes, binomial lattices, Monte Carlo share-path simulation and other probability-based models.

Houlihan provides assistance to clients in addressing a variety of employee stock option issues pursuant to FAS 123R.

OUR SERVICES

• A formal opinion of value estimated using our propriety methods and prepared in accordance with FAS 123R
• Transparent and verifiable model inputs such as early exercise, termination, retirement probabilities, and annual volatility
• A review and commentary on models, data, and conclusions prepared by the client
• Reconciliation of FAS 123 R to IRC 409 (A)