How to Manage Burn Rates Through a Stock Price Decline

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:

• Sizing Grants During Periods of Market Volatility
• 2 Reasons Multiday Averages Make Sense for Grant Sizing