Improving Estimates of Complex Option-BasedEmployee Compensation

Stock-based compensation allows employers and employees to share in the risks and rewards of their
company’s success. In addition to intangible benefits such as team building and goal sharing, there
can also be large financial rewards for employees and similar costs to employers. These costs must
be reported in the company’s financial documents such as quarterly and annual reports. Current (and
future) vesting rules for stock options are making them difficult to price, and this makes financial
reporting difficult. New simUlation-based pricing models will be developed and integrated into
SyncBASE Inc.’s flagship product for managing and monitoring stock-based compensation.

Faculty Supervisor:

Stephen Chen

Student:

Partner:

SyncBASE Inc

Discipline:

Mathematics

Sector:

University:

York University

Program:

Accelerate