If you are like me, you haven't won a Nobel Prize in Economics lately. But if you are a Human Resources professional in a public company, you are probably on the hook for explaining the intricacies of the Black-Scholes option pricing model. But how well do you understand the factors that determine the valuation of your company's stock options? And if the size of your company's stock option pool fluctuates each year in conjunction with the Black-Scholes value, how do you explain this to your employees?

A recent article posted on CompDevil's blog discusses the inputs that impact Black-Scholes valuations and a major challenge that this valuation methodology creates for Human Resources. Check it out at compdevil.com/blog