Insights

In the Stock ’N Roll podcast, Dr. Stephan Hostettler and host Christoffer Herheim explore the critical gap between fair value and perceived value in equity compensation. While companies calculate equity through financial models, employees often see it very differently - sometimes undervaluing stock options or performance shares when conditions appear unrealistic or too complex. This gap is particularly visible in startup environments, where founders may view equity as immense potential, while employees perceive a far less certain benefit.

Key Outcomes of the Podcast Episode

• Understanding the difference between fair value and perceived value of equity compensation
• Why employees may undervalue options despite significant company expense
• Recognition of the startup dilemma: founder optimism vs. employee perception
• Guidance on bridging the gap through empathy, transparency, realistic design, and communication

This episode provides leaders, HR professionals, and compensation specialists with insights to align perception with reality - ensuring equity incentives truly motivate and engage talent.

You can listen to the full episode on Spotify:

Prefer reading? Check out the written breakdown  here .