Cliff vs Graded Vesting: Straight-Line vs Tranche-by-Tranche
This lesson is part of the course
In this lesson
You spread an RSU award that vests 25 % per year over four years, once tranche by tranche (graded attribution) and once straight-line, and compare how front-loaded the expense is.
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Lessons in this course
- Plan Terms & Grant-Date Fair Value with Black-Scholes Locked
- Cliff vs Graded Vesting: Straight-Line vs Tranche-by-Tranche Locked
- Forfeitures: Estimate Up Front vs Account as They Occur Locked
- RSUs vs Options vs Performance Shares: Market & Non-Market Conditions Locked
- Modifications: Repricing & Incremental Fair Value Locked
- Journal Entries: Expense, RSU Vesting & Option Exercise Locked
- Diluted EPS: The Treasury Stock Method Locked
- ESPP Discount Expense & Total Expense by Year Locked