Equity-Based Compensation Valuation

December 1, 2023

Stock-Based Compensation in Volatile Markets: Employee, Management, and Investor Perspectives

Financial Reporting Flash: Issue 3, 2023

Executive Summary

  • Over the past decade stock-based compensation (SBC) gained widespread popularity as a way to reward employees while conserving cash.

  • Turmoil in the stock market during 2022 resulted in employees seeing diminishing value in SBC and investors questioning its aggressive use.

  • In this article, we discuss how market volatility can affect employee, management, and investor perspectives on SBC.

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