The NASPP Blog

Our popular “Meet the Speaker” series, featuring interviews with speakers at the 25th Annual NASPP Conference, is a great way to get to know our many distinguished speakers and find out a little more about their sessions in advance of the Conference.

For today’s “Meet the Speaker” interview, we feature an interview with Carly Sanfilipo of Aon, who will lead the session “Valuation 101: A Beginner’s Guide to Equity Valuation.”  Here is what Carly had to say:

NASPP: Why is equity valuation particularly timely right now?

Carly: Equity valuation is eternally timely! There are always new people that join our industry. And even if you’re an industry veteran, it’s wise to periodically review your valuation practices to ensure that they are still applicable. What was appropriate for your company three years ago may no longer be!

NASPP: What is a common mistake companies make when valuing awards and how can they avoid this?

Carly: I often see companies blindly use their own historical data to calculate their expected life assumption. There are many reasons why past behavior may not be indicative of future expectations. You should always analyze your data with this in mind. Have plan provisions changed? Have these historical options spent time both in-the-money and underwater? Has your optionee population changed? How have RIFs affected behavior? And the list goes on…

NASPP: What is an innovative solution you’ve seen to address a challenge in valuing equity awards?

Carly: When newly public companies rely on peer volatility, it is wise to prepare for when you will use your own historical or implied volatility. One elegant solution: time-weight peer volatility and your own historical volatility. Not only does this naturally phase out your reliance on peers, but it also avoids the inevitable audit question of “why are you changing methods NOW?”

NASPP: What is your favorite memory from a past NASPP Conference?

Carly: Hands down, pig races at the Aon booth in the exhibitor hall. For some reason, witnessing dozens of grown adults joyfully shout at fluorescent mechanical stuffed animals never gets old. Why does Aon do pig races, you may wonder? Just ask someone wearing an Aon jersey!

Don’t miss Carly’s session, “Valuation 101: A Beginner’s Guide to Equity Valuation,” at the NASPP Conference!

About the NASPP Conference

The 25th Annual NASPP Conference will be held from October 17-20 in Washington DC. This year’s program features close to 100 sessions on today’s most timely topics in stock and executive compensation; check out the full agenda and register today!