It should be noted that company co.’s share-based payments are subject to D. Non-vesting condition.
Non-vesting conditions are all conditions that, while necessary for the counterparty to receive the share-based payment, do not constitute service or performance conditions.
Here, as part of a new incentive program, employees received shares that can be exercised over a five-year period. These shares are specifically declared to be only subject to market performance, which means that the company's stock price must increase by at least 30% from the original price. This shows that there aren't any service- or vesting-related requirements.
In conclusion, Company co.’s share-based payments are subject to Non-vesting condition.
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Company Co. has 1,000 employees and it decides to grant each of the employees 200 share options as part of its new rewards plan. The options are exercisable over 5 years and subject only to the condition that the company’s stock price must be at least 30% higher than its original issue price. Company Co.’s share-based payments are subject to:
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Service condition
Non-market performance conditions
Non-vesting condition
Service and market performance conditions