Employee Share Options Program Valuation

Introduction

The Employee Share Options Program (“ESOP”) has become one of the most widely used share-based payment plans for businesses aiming to reward, attract, and retain top talent. At Forvis Mazars, we recognize the critical connection between an ESOP and a company’s strategic and financial objectives. We also understand the importance of addressing key ESOP considerations in valuations for financial reporting purposes.

Why do you need an ESOP valuation?

• Regulation Requirements The Stock Exchange of Thailand (“SET”) established a strict requirements to ensure transparency, protect stakeholders, including approval processes, detailed disclosures, and protection against conflicts of interest
• Accounting Requirements As per TFRS 2 - Share-Based Payment, ESOP valuations must follow fair value measurement principles to ensure the valuation reflects current market conditions and provides an accurate basis for financial reporting
• Complex Valuation Assessment ESOP valuations demand technical expertise to ensure accuracy and compliance with accounting, legal, and tax standards

How we can help?

We believe that valuation is not a one-size-fits-all process. Therefore, our team provides an independent, technically robust valuations tailored to your specific needs. With extensive knowledge, expertise, and experience, we deliver reliable assessments of your ESOPs, ensuring alignment with the expectations of regulators, investors, and audit firms.

1. Tailored Valuation

• Application of industry-standard methodologies, such as binominal model and Black-Scholes model
• Customized solutions that reflect your company's size, industry, and growth potential

2. Regulatory Compliance

• Ensure alignment with SET requirements, tax laws, TFRS, and other financial reporting requirements 
• Provide detailed documentation to satisfy audit scrutiny

3. Comprehensive Support

• Deliver clear and transparent valuation reports that are easy to understand
• Offer ongoing advisory for revaluations, updates, and evolving ESOP structures
• Support in communicating valuation outcomes effectively to employees and stakeholders