The Compensation Associated with Restricted Stock Under a Stock Award

question 77

Multiple Choice

The compensation associated with restricted stock under a stock award plan is:

• A) The book value of an unrestricted share of the same stock times the number of shares.
• B) The estimated fair value of a share of similar stock times the number of shares.
• C) Allocated to expense over the service period which usually is the vesting period.
• D) The book value of a share of similar stock times the number of shares.

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Definitions:

Affective Commitment

An employee's emotional attachment to, identification with, and involvement in a particular organization.

Performance

The manner in which an individual or group executes or accomplishes tasks, objectives, or duties.

Progression of Withdrawal

The theory describing stages through which an employee goes leading up to resignation, starting from minimal engagement to complete disengagement.

Managers

Individuals in an organization responsible for directing and overseeing the work of a group of people.