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Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.
Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.
Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.
Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.
Performance-based options: The stock options for which compensation plans are based on the performance targets like divisional revenue, or sales revenue, or earnings per share, are referred to performance-based options.
Options with market-related: The stock options for which compensation plans are based on the market-related targets like stock price of the option exceeding the index, are referred to market-related options.
To mention: The primary objective of recording compensation expense for the share-based compensation plans
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To describe: The effect of compensation expense of $378,000,000 on the stock options value
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Chapter 19 Solutions
Intermediate Accounting w/ Annual Report; Connect Access Card
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