ESO ADVISORY SERVICES

S-Cube provides cutting-edge consulting services for the design and administration of compensation and benefit programs and financial products that help companies manage their benefit liabilities while enhancing shareholder value.

 Compensating employees is a delicate balance between meeting the employees' expectations and the company's financial goals. S-Cube assist companies find that balance by structuring equity incentive plans in many different forms from formal employee stock ownership plans (ESOP) to employee stock purchase plans (ESPP).

S-Cube provides several solutions to meet companies' ESO budget. These solutions include using European options, American options or Exotic options:

• European Options – may be exercised only at the expiry date of the option.
• American Options - may be exercised at any time before the expiry date.
• Exotic Options – are options with unusual exercise styles such as Bermudan options, Canary options, swing options and other sophisticated options.

There are many other factors that influence the value of the options that should be considered when structuring an incentive plan. These factors include performance conditions, knock-in and knock-out prices, value cap and other conditions.

An additional way of reducing financial impact on companies' financial statements is using lattice models such as the Binomial model and Monte-Carlo Simulations. Given that these models take into account employee exercise patterns based on changes in the company’s stock price and other variables, and allows for the use of other dynamic assumptions, it may result in a reduced valuation of employee stock options.