SAN JOSE, Calif., March 12 /PRNewswire-FirstCall/ -- Radford Surveys + Consulting, a business unit of Aon Consulting that provides compensation surveys and consulting to the technology and life sciences industries, has launched a new set of equity compensation valuation services in response to the latest equity expensing rules put into effect by the Financial Accounting Standards Board (FASB).
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The new Radford Valuation Services practice provides a variety of cost- effective valuation and accounting services to help technology and life sciences companies better manage compensation expense under FAS 123(R) and related regulation.
Led by actuarial expert and thought leader Terry Adamson, the Radford Valuation Services team takes a comprehensive approach to equity expensing in all facets of valuation. The team's expertise includes:
-- Sophisticated actuarial modeling to more accurately determine the range of expected expense -- Financial reporting to create transparency in the audit process and mitigate risk -- A partnership approach to working with your internal resources to ensure success -- Advice and counsel to align total compensation programs with overall business goals
"Having worked with 150-plus companies, including 40 of the Fortune 500 companies, the Radford Valuation Services team understands the meticulous due diligence required to perform thorough financial reporting valuations," said Terry Adamson, vice president, Radford Surveys + Consulting.
"An exciting world of creative equity design is evolving in front of us, intended to align payout with both performance and shareholder returns. Our team's breadth of experience in managing and valuing complex equity compensation programs gives us the advantage of producing the most accurate analysis and disciplined methodology available," continued Adamson. "We focus on creating customized strategies for our clients and being responsive to their needs in an expanding compliance environment, where transparency, defensibility and bottom-line impact are top priorities."
Together with Aon, Radford Valuation Services has been doing significant work in the area of Employee Stock Option (ESO) valuation and accounting under FAS 123(R). Areas of expertise as a result of the collaboration with Aon include:
-- Development of required assumptions as prescribed under FAS 123(R) for
traditional stock options in any option pricing model
-- Alternative modeling approaches such as the Aon Actuarial Binomial
Model, Aon Multiple Point Black-Scholes Model, or Aon Hazard Rate
Model that better approximates compensation expense
-- Exotic models required to calculate the fair value and amortization
period of Performance Awards under FAS 123(R)
"Valuing stock options and other types of equity-based compensation has become critical to a company's bottom line with the implementation of FAS 123(R)," said Linda E. Amuso, senior vice president, Radford Surveys + Consulting. "The combination of Radford's equity plan design services and our new Valuation Services will provide our clients with a holistic approach to developing equity strategies factoring in market trends, competitive pressures and the economic impact to the business based on actual employee experiential data."
For more information on the Radford Valuation Services team, please visit http://www.radford.com/valuationservices , or contact Vice President Terry Adamson, (610) 834-2280 or
For more information, contact:
Fabiola A. Price, 408.321.2653,
For more than 30 years, Radford Surveys + Consulting has provided compensation market intelligence to the technology and life sciences industries. Global survey databases, which include more than two million incumbents, offer current, reliable data to 2,000+ clients. Leveraging Radford survey data, our thought-leading compensation consulting team creates tailored solutions for the toughest business and compensation challenges facing companies at all stages of development. Radford's suite of global surveys includes the Benchmark, Executive, Sales, Benefits, Global Life Sciences and International Surveys. Clients access survey data, tools and resources via the Radford Network, an exclusive client-only extranet with 7,000 registered users. For more information on our products and services, visit http://www.radford.com/ .
About Aon
Aon Corporation ( http://www.aon.com/ ) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. There are 43,000 employees working in Aon's 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.
This press release contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. Potential factors that could impact results include: general economic conditions in different countries in which we do business around the world, changes in global equity and fixed income markets that could affect the return on invested assets, fluctuations in exchange and interest rates that could influence revenue and expense, rating agency actions that could affect our ability to borrow funds, funding of our various pension plans, changes in the competitive environment, our ability to implement restructuring initiatives and other initiatives intended to yield cost savings, our ability to execute the stock repurchase program, our ability to obtain regulatory or legislative changes to permit continuous sales of our supplemental Medicare health product, changes in commercial property and casualty markets and commercial premium rates that could impact revenues, changes in revenues and earnings due to the elimination of contingent commissions, other uncertainties surrounding a new compensation model, the impact of investigations brought by state attorneys general, state insurance regulators, federal prosecutors, and federal regulators, the impact of class actions and individual lawsuits including client class actions, securities class actions, derivative actions, ERISA class actions, the impact of the analysis of practices relating to stock options, the cost of resolution of other contingent liabilities and loss contingencies, and the difference in ultimate paid claims in our underwriting companies from actuarial estimates. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's filings with the Securities and Exchange Commission.
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