share based payment

Dear sir,

I have a doubt in the following statement i encountered in my study text:

“The entry to equity is normally reported in ‘other components of equity’. Share capital is not affected until the share-based payment has ‘vested’.”

sir don’t you think it should have been “…until share based payment has been EXERCISED”?

Cause even if the ‘X’ no.of shares have been vested, the amount that goes in share capital will only equal to the shares that have actually been exercised(multiplied with nominal value of shares) , which could clearly be below the shares that have been vested(or entitled, as i understand it).