Stock Option Experience Study Frequently Asked Questions
- What type of analysis will be performed on the stock option data?
The data will be used for the experience analysis of stock options exercises. The emphasis will be on predicting the exercise behavior of the option holders under different option terms and stock price paths. This information will be used to estimate employee stock option value for FAS 123R. No additional analysis will be performed on the data without the consent of contributing companies.
- Who will have access to the stock options data?
Only the research team appointed by the SOA will have access to individual company data. The researchers will be required to sign a confidentiality agreement to ensure confidentiality is maintained. The research team will not have access to employee names.
- What kind of security measures will be taken to keep the data confidential?
The database will be maintained on a dedicated, password-protected computer at the Haas School of the University of California, Berkeley and will be guarded with the highest level of campus computer security.
- Will individual information be identifiable?
No one outside of the research team will have access to individual company data. The Task Force directing the study will only review aggregated data.
- How long will the stock option data be kept?
The database used in the study will become the property of Society of Actuaries. It is intended that the data will be kept for similar studies in the future. However, future use of the data will be subject to the consent of contributing companies.