RESTRICTED STOCK AND PERFORMANCE SHARES. Over the last numerous years, companies have actually adopt

Why do you get less restricted shares than stock options? Each restricted stock/RSU grant has full value based upon the stock price, while the value of stock options is technically just a right to purchase stock at your repaired workout price. The true value of choices depends on the stock's gratitude above the exercise price at some future point. In a grant of limited shares/units, nevertheless, the value of each share is readily ascertainable and is much higher than the value of a simple option. As stock alternatives are more difficult to value and must now be expensed by your business when they are approved, companies have actually typically cut back on them. Restricted stock likewise poses less threat to the worker since, the majority of the time, stock doesn't go to zero.