Archive 2012-50: Transfers of Non-Qualified Stock Options



Archive 2012-50: Transfers of Non-Qualified Stock Options: Making the Most of Stock Option Benefits – Transfers and Valuation Methods

**Webinar 50 Broadcast Date: June 5, 2012**

presented by

  • Espen Robak, CFA, Moderator, President, Pluris Valuation Advisors LLC with:
  • Scott Newman, Esq., of Riker, Danzig, Scherer, Hyland & Perretti LLP,
  • Kyle Vataha, Vice President ofPluris Valuation Advisors LLC, and
  • Jack Connell, Managing Director of 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
    • The participant will learn how various trusts work and the benefits of transferring options, both as lifetime exemption gifts and in annual exclusion
    • 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


    • 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


    Included in this downloadable package are:

    • Audio/Video file
    • Webinar transcript
    • Original Webinar handouts

    The archived webinar package is an Adobe Presenter PDF file that allows you to view the video of the webinar with the synced audio so that you see the presentation just as it was presented “live.” The Presenter format also allows for easy navigation through the webinar so you can quickly go to a specific section in the presentation. The handout materials are included in the file. To view the Webinar Presenter file, you must have Adobe Reader software version 9 or higher. You can download the free current version of Adobe Reader at Please note that CPE is only available for live webinar broadcasts.

Additional information

Weight 0.00 oz