If you read the note for the options column where the bulk of the comp exists (which seems to be what is getting you upset) you’ll see it refers to Note 7 in their annual 10-K. Note 7 describes the stock options granted in some detail and in short it looks like they are valued perhaps based on their strike prices which are likely well above current prices. So if Antonio has 5000 options with a strike of $3, the fair value for accounting purposes would be $1.5mm in compensation (options have a 100 multiplier). So I think it’s more like potential compensation assuming the options are all exercised, not money in his pocket at this time.
ASC 718 was used in determining the value as stated in the financials. Here’s an excerpt from that accounting rule (I’m guessing they use strike price):
“Because stock options and profits interest units are illiquid assets, their value can’t be determined on the open market; companies need to calculate how much they’re worth using a model. ASC 718 does not state a preference for the valuation model used, but it does list factors that a good model must include:
Expected term
Volatility
Strike price
Interest rate
Dividend yield
Fair market value (FMV), calculated using a 409A valuation”
So…they will only make good money if the stock goes up…just like all of us…imo…hope that helps calm some nerves. Thumbs up if you agree
ASC 718 was used in determining the value as stated in the financials. Here’s an excerpt from that accounting rule (I’m guessing they use strike price):
“Because stock options and profits interest units are illiquid assets, their value can’t be determined on the open market; companies need to calculate how much they’re worth using a model. ASC 718 does not state a preference for the valuation model used, but it does list factors that a good model must include:
Expected term
Volatility
Strike price
Interest rate
Dividend yield
Fair market value (FMV), calculated using a 409A valuation”
So…they will only make good money if the stock goes up…just like all of us…imo…hope that helps calm some nerves. Thumbs up if you agree
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