Equity Expert: A Podcast from the NASPP cover image

Equity Expert: A Podcast from the NASPP

How to Manage Burn Rates Through a Stock Price Decline

Feb 1, 2023
21:31

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:

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