How to Manage Burn Rates Through a Stock Price Decline
21m
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Equity Expert: A Podcast from the NASPP
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Why stock price volatility is a problem when it comes to sizing grants and how using a multiday average and other approaches can help you manage your burn rate.
Episode Notes:
- How companies typically determine grant sizes (0:58)
- The effect of declining stock prices on grant sizes (2:15)
- Pay equity considerations (4:19)
- Using a multiday average to denominate grants (7:14)
- What averaging period to use (10:09)
- Disadvantages of a multiday average approach (14:15)
- Other approaches to manage share usage (15:47)
- Restricting award eligibility to control burn rates (18:38)
Resources Mentioned in This Episode:
- Sizing Grants During Periods of Market Volatility
- 2 Reasons Multiday Averages Make Sense for Grant Sizing
The episode How to Manage Burn Rates Through a Stock Price Decline from the podcast Equity Expert: A Podcast from the NASPP has a duration of
21:31. It was first published
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