Stock option plan for key executives


On October 15, 2010, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2011, 20 million stock options were granted, exercisable for 20 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2014, and December 31, 2016, at 80% of the quoted market price on January 1, 2011, which was $15. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $6 per option.

Two million options were forfeited when an executive resigned in 2012. All other options were exercised on July 12, 2015, when the stock's price jumped unexpectedly to $19 per share.

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Accounting Basics: Stock option plan for key executives
Reference No:- TGS048078

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