The Connection Between 409A Valuation and Deferred Compensation 409A valuations are directly linked to deferred compensation because they determine the fair market value of stock options granted to employees. Accurate valuations ensure stock-based compensation complies with IRS rules, preventing unexpected taxes or penalties. This protects both employees and founders while maintaining transparent, legally sound equity incentive programs. https://uploadyourblogs.com/business/the-connection-between-409a-valuation-and-deferred-compensation