The point in time when ownership of a compensation-related option or sum of shares passes to the manager refers to:
A) the agency date.
B) the compensation payment date.
C) granting.
D) vesting.

Question

Quizplus · Accepted Answer

Vesting is the point in time when ownership of a compensation-related option or sum of shares passes to the manager. This means that the manager can now exercise the option or sell the shares. The granting of the option or shares occurs before vesting, while the compensation payment date is the day when the manager actually receives the monetary value of the option or shares. The agency date is not a relevant term in this context.

The Point in Time When Ownership of a Compensation-Related Option