Use Case · For the CFO
A different issuance mechanism delivers the same equity compensation with materially less GAAP cost. Cleaner earnings, lifted EPS, and an end to the buyback treadmill, without changing what your people earn.
The Problem
SBC has become the largest non-cash expense on most large-cap income statements - and it's growing faster than the comp programs that drive it. The expense is real, the EPS drag is real, and the standard playbook to offset it is expensive and temporary.
Stock-based compensation flows through operating expenses. For large public companies, that's hundreds of millions a year reducing net income on the line investors watch most.
Each new grant adds to the SBC stack. Programs that scale headcount or grant value see SBC growth outpace revenue growth, which compresses margins quarter after quarter putting pressure on your stock price.
Companies typically address SBC pressure with buybacks (expensive, recurring) or by cutting grants (costly to retention). Neither addresses the underlying issuance mechanism that drives the expense.
The Mechanism
Cashless Participation® eliminates the SBC drag on your largest equity programs without changing comp philosophy or what employees receive. Same grants, significantly lower GAAP cost on your income statement.
Traditional Issuance
Cashless Participation®
The Outcome
Up to 85% less GAAP SBC expense flowing through the income statement. Same grants delivered to the same employees, recognized at a fraction of the cost.
Illustrative example
For a company with $100M in annual SBC and a P/E of 15.
Today
With Carver Edison
Methodology: 85% SBC reduction in Year 1 ($100M → $15M = $85M saved), growing 5% annually. Shareholder value = annual SBC savings × P/E of 15. 3-year total = ($85.000M + $89.250M + $93.713M) × 15 = $4.019B.
Related Outcomes
Dramatically reduce dilution on your share pool by issuing fewer shares to fund the same compensation.
See use case → 03.Lower SBC lifts your net income. Fewer shares shrinks the denominator. EPS improves from both ends.
See use case → 04.Stop spending buyback capital offsetting the dilution your comp plan creates.
See use case →Book a 30-minute walkthrough with our team. We'll model your actual numbers, surface the projected SBC and dilution impact, and walk through what implementation looks like at your company.