How to Manage Burn Rates Through a Stock Price Decline

01/02/2023 21 min
How to Manage Burn Rates Through a Stock Price Decline

Listen "How to Manage Burn Rates Through a Stock Price Decline"

Episode Synopsis

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 Volatility2 Reasons Multiday Averages Make Sense for Grant SizingSupport the show