Adoption of a global employee stock option
program The Board has resolved to propose that the General Meeting shall resolve to adopt a global employee stock option
program, according to which the employees of the group can be allocated, at no premium, in total not more than 1,000,000 stock options until the Annual General Meeting 2008.
While determining a value for employee stock options
for any company is challenging, attempting to derive a value for employee stock options
for a private, emerging growth company is nearly impossible.
Under SEC and FASB guidance, fair value for employee stock options
could be based on the Black-Scholes formula or a lattice model.
public companies, for the most part, have not reflected the hypothetical or fair value costs of their employee stock options
The top 10 questions most asked by CEOs and CFOs with respect to accounting for employee stock options
and other stock-based compensation plans
This successful ESOARS auction supports the effectiveness of this method for valuing employee stock options
," said W.
Unlike stock options that are traded on an exchange, employee stock options
Even so, Keitel says, Black-Scholes was designed for derivatives that are short-dated, transferable and hedgeable--three adjectives that do not apply to employee stock option
As the memory of the technology boom fades, so does the once ubiquitous employee stock option
Employee stock options
- It is proposed that the Board of Directors shall have the possibility to grant employee stock options
to the CEO and other members of the executive management.
This valuation method uses an auction of a tracking security -- ESOARS -- that we believe will prove to be the best way to obtain the fair market value of employee stock options
," said W.
Further detail on the implementation guidance above can be found in the FERF report mentioned earlier, Valuing Employee Stock Options
and Other Share-Based Payments: Complying with FAS 123R, which was published in February.