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Hello
In your examples you show in the first year they expected 4 directors to leave and in the second 2.
I assume that the 4 of the first year did not actually leave. If they did leave would it be 10-4 year one and 6 – 2 year 2?
Also, in the exam is it assumed they do not actually leave in the first year?
Hi,
No, you cannot assume that the 4 directors have left in this example or in the exam. The company is changing its estimate/assumption from 4 leaving to now 2 expecting to leave. Therefore there are expected to be 8 at the end of the scheme who are entitled to the options.
If the directors have actually left then you will be told that they have.
Thanks
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