Hi,
I would like to know the treatment of the following
A director has an option of 20,000 shares at a grant value of 4 at 2005
Conditions are
1- remains employed till 2008
2- increases profit by 20%
The shares will vest at the earlier of 2008 and when target is achieved
It was estimated that the target will be achieved in 2006
End of 2006, it was realized that the target won’t be achieved till 2008.
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Share based payment equity settled
5y ago#1Sometimes the vesting period will change as in your example.
Assume 2 year vesting period, which later changes to 4 years.
At the end of 2005, the plan would be 1/2 vested.
At the end of 2006, the vesting period is now 4 years, so the plan will be 2/4 vested.
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