Stock Compensation Reporting (ASC 718/Section 409A)

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Silverpine Group provides expert services in providing companies with valuations used for the purpose of issuing compensatory securities that can also be used for tax compliance.

The dot-com boom of the late 1990s saw a proliferation of stock options, with many employees benefiting significantly from the rising stock prices of their companies. However, the subsequent dot-com bust and corporate scandals of the early 2000s led to a reevaluation of stock options. Supported by the passing of the Sarbanes-Oxley Act, there was a push for greater transparency in financial reporting. This led to significant changes in how companies account for stock options. The FASB issued new standards (like SFAS 123R, now known as ASC 718), requiring companies to expense stock options, which significantly impacted how companies viewed and managed stock option compensation.

Today, stock options remain a key component of compensation, especially in startups and technology companies, although the structures and strategies have become more sophisticated. Silverpine Group has closely tracked how companies have implemented new forms of equity compensation and provides a wide range of services to aid in financial reporting that accurately reflects the fair value and fair market value of the securities being issued. We are proud to offer services that not only satisfy the requirements of ASC 718 and Section 409A, but we stand by our work and can assist your management team through the audit process and quarterly/annual updates to the valuation.

Silverpine Group has performed valuations that satisfy ASC 718 and Section 409A for various securities, including:

  • Employee Stock Options
  • Warrants Issued as Compensation
  • Restricted Stock Units
  • Stock Appreciation Rights Issued as Compensation
  • Phantom Stock
  • Performance-Based Securities
  • Securities Issued to Celebrities and Brand Ambassadors

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Contact Silverpine Group and let us help you determine the value of your business or business interest.

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