Tuesday, June 5, 2012
1:00 p.m. – 3:00 p.m. EDT
Transfers of Non-Qualified Stock Options
Making the Most of Stock Option Benefits
Transfers and Valuation Methods
Espen Robak, CFA, Moderator
President, Pluris Valuation Advisors LLC
Scott Newman, Esq., Panelist
Riker, Danzig, Scherer, Hyland & Perretti LLP
Kyle Vataha, Panelist
Vice President, Pluris Valuation Advisors LLC
Jack Connell, Panelist
Managing Director, Connell & Partners
Transfers of Non-Qualified Stock Options (NQSOs) are a growing, but still greatly underappreciated tax planning technique. Meanwhile, the methodologies and research for valuing stock options for tax purposes are both highly contentious and poorly understood in the valuation community. The methods that appraisers usually apply in the fair value financial reporting context are not applicable in tax matters. This program will discuss common terms and features of stock option plans, the how’s and why’s of transferring stock options, and the valuation of such transfers.
Webinar Outline:
- Overview of stock option plans and NQSOs
- The role of NQSOs in benefits packages for publicly traded companies
- Common stock option plan terms
- Transferability of stock options in common plan types
- Estate planning benefits to executives and directors
- GRATs and other Trusts
- Tax planning and other estate planning advantages of inter-vivos transfers of stock options
- Rev. Proc 98-34
- Valuation discounts for stock options and other illiquid securities
- The breakdown of the Black-Scholes model and other theoretical option pricing models when valuing illiquid options
- The role of academic research and empirical data when discounting stock options
- The impact of valuation discounts on the tax planning aspects of option transfers
- Transfer examples
Learning Objectives:
- The participant will learn how to distinguish between stock option plans and to identify plans that allow stock options to be transferred to family trusts
- The participant will learn how various trusts work and the benefits of transferring options, both as lifetime exemption gifts and in annual exclusion gifting
- The participant will learn about Rev. Proc. 98-34 and how it was developed
- The participant will be alerted to the main problems with the theoretical models used for valuing illiquid stock options
- The participant will learn about the available research and its main implications for options valuations
- The participant will learn how to develop a discount estimate for stock options
Handouts:
- Webinar PowerPoint slides
- Following the webinar, attendees will receive a webinar transcript along with an interactive video of the webinar showing the audio synced to the slide presentation in real time
| The VPS StraightTalk webinar series brings you outstanding continuing professional education on business valuation and litigation topics. Unless otherwise noted, all webinars are targeted at an intermediate program level, qualify for two hours of CPE credit, and begin at 1:00 p.m. ET. Pay one fee of $199 for everyone in your firm to participate. Unlimited employees from your firm will each receive 2 CPE credits for NO additional fee (applies to all employees at your firm who sign in per the webinar participant instructions.) More information on the VPS StraightTalk webinar series can be found at www.gofcg.net/vps. |
Jim Hitchner's Valuation Products and Services (VPS) is publisher of Financial Valuation and Litigation Expert, a bi-monthly journal featuring views and tools from experts in business valuation, litigation services, and forensics and fraud. VPS has also developed the AICPA BV Standards Compliance Toolkit and an exciting new interactive online periodical, VPS Q & A. See www.valuationproducts.com.
Valuation Products and Service, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org.