Nathan O’Connor
Managing Director
Reporting
We provide companies of all sizes with financial reporting services for stock-based compensation.
Valuation
Get fair value measurement and modeling for all sorts of equity-based awards and securities, whether business as usual or special circumstances.
Complex Securities Valuation
HR Advisory
Our HR advisory services provide the insight you need to improve program design, grant more equity, and tell a cleaner story in your proxy and financial statements.
CEO Pay Ratio
Resources
Dive into our library of publications on a wide range of stock-based compensation topics.
About Us
We’re dedicated to bringing insight, control, and expanded capability to your compensation strategy.
Nearly two decades after the release of FAS 123R (now ASC 718), the concept of forfeiture rates is widely known and understood in the industry. In practice, though, finding the right forfeiture rate to apply is a real challenge. Bad estimates of the forfeiture rate lead to large true-ups no matter what expense model you use, causing unexpected income statement volatility. Worse yet, in today’s analytics-driven business environment, the wrong estimated forfeiture rate renders stock comp forecasts and budgets useless.
We can help you in the following areas:
Avoid constant true-ups and minimize your budget-to-actual variances with forfeiture rates that are historically sound and representationally faithful.
contact usA particularly challenging topic within ASC 718 is the required use of a forfeiture rate. Numerous techniques exist for first deriving an appropriate forfeiture rate and then applying it within…
Many companies apply a single forfeiture rate to all the grants within their ASC 718 amortization model. However, much like the requirement in estimating the expected term assumption, ASC 718…
Modifications are among the most challenging areas of equity compensation award design, valuation, and accounting under ASC 718 and IFRS 2. Every modification is unique to the company and its…
Services We provide customized forecasting across all reporting categories of interest: expense, diluted EPS, basic EPS, tax windfalls and shortfalls, and new award designs being considered. Key components of our forecasting,…
Managing Director
Nathan O’Connor is a Managing Director at Equity Methods, a consultancy that helps hundreds of public and private companies model, value and account for equity compensation and other complex securities.…
Read moreHighlights from the 26th Annual NASPP Conference
Tricky Equity Compensation Issues Faced by Private and Newly Public Companies
CEO Pay Ratio: 40 Frequently Asked Questions and Answers
Equilar Executive Compensation Summit 2018 Conference Roundup
What You Need to Know: Contingent Consideration (Earnouts) Valuation
Managing Director, Valuation & HR Advisory Services
“I’m a teacher at heart — always happy to field questions and help clients understand, whether it’s at a high level or deep in the details.” David is a managing…
Read moreGetting Your TSR Design Details Right
Design Attribute Checklist for Relative TSR Awards
Long-Term Incentive Plans: The Universe of Design Possibilities
Equity Award Modifications: Connecting the Theory to Practical Cases
Five Ways that West Coast Companies Design ESPPs
Equity Compensation in Corporate Transactions
Top 5 Performance Award Accounting Concepts for Compensation Professionals to Know