Executive Compensation: Personal Stock Option Modeling


Fortune 500 transportation company offers its executives a complex option vesting strategy. Variable vesting dates and multiple strike prices in combination with a fluctuating stock price partially undermines the value of the options as an incentive.


Provide each company executive an accurate, secure method to assess the value of their options as compensation.


Alliance Data developed a Personal Stock Options Evaluation Tool in under 30 days. It provides a personalized modeling environment for each executive including personal stock option data and vesting schedules, combined with current stock price, to determine the value of both currently vested and future options. It also provides a "what if" modeling tool to allow each executive to evaluate scenarios based on future stock price.


Each company executive now has full visibility as to the value of personal options and can easily correlate the value to an increase in company stock price.