The Valuation of Market-Leveraged Stock Units
Posted: 20 May 2019
Date Written: July 16, 2013
A market-leveraged stock unit (MSU) is a form of employee compensation in which the number of shares received on the vesting date depends on the stock price at that time. MSUs have been proposed as a way of overcoming some of the drawbacks of stock options and restricted stock units. In this paper, we show how MSUs can be valued and discuss their properties.
Keywords: employee compensation, MSU, RSU, option, valuation
JEL Classification: M52
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