Improving estimates of complex option-based employee 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:

Dr. Stephen Chen

Student:

Dominic Dotterrer

Partner:

SyncBASE Inc.

Discipline:

Finance

Sector:

Finance, insurance and business

University:

York University