An option giving an employee the right to purchase the issuing corporation's stock at a specified price within a defined period as partial payment for the employee's services. The measurement date is the earliest date on which both the option price and the number of shares to be issued are known.Compensation = quoted stock market price at the measurement date - option price
Related information about compensatory stock option:
- Compensatory Stock Option: Definition from Answers.com
Options offered to employees as partial compensation for their services. Compensation for services is measured by the quoted market price of the stock.
- compensatory stock option - Business Definition
compensatory stock option definition: A stock option given by an employer to an ... In general, the value of a compensatory stock option is considered an ...
- What is compensatory stock option? - BusinessDictionary.com
Definition of compensatory stock option: An option that grants an employee the right to buy shares of the company's stock at a set price. Stock options are often ...
- What is compensatory stock option? - InvestorWords.com
Definition of compensatory stock option: An option giving an employee the right to purchase the issuing corporation's stock at a specified price within a defined ...
- Incentive stock option - Wikipedia, the free encyclopedia
Additionally, there are several other restrictions which have to be met (by the employer or employee) in order to qualify the compensatory stock option as an ISO.
- Part III - Internal Revenue Service
1 A nonstatutory compensatory stock option refers to a stock option granted in ... Although the recipient of a compensatory stock option receives a valuable ...
- Taxes—Compensatory Stock Options - Cannon Financial Institute
the compensatory stock option arrangement must be ... Some commentators have called attention to potential problems with compensatory stock option ...
- The CPA Journal
The amount of total compensation associated with a compensatory stock option must be determined, then amortized to compensation expense over the service ...