No current management compensation is recognized if the options are out of the money, however I came across a couple of questions where the comp. expenses are calculated as (option price*number of options)/number of years in vesting period, with no consideration of being in- or out-of the money. Does this make sense to anyone? If no current expense is suppose to be recognized, why do we calculate this anyway?
i think they didnt used to recognise an expense if it was OTM bu tnow u must recognise an expense using that formula
Your compensation Expense is base on option valu. There was a passage that said so (how it wasn’t before and now it is). Therefore ur compensation expensive, is the cost of option issued this year multiple by the number of options