The following is a summary of share-based compensation data of PepsiCo (from 2019 annual report): Stock...
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The following is a summary of share-based compensation data of PepsiCo (from 2019 annual report): Stock Options 2019 2018 2017 Total number of options granted (in 000) 1,286 1,429 1,481 Weighted average grant-date fair value $10.89 $9.80 $8.25 of options granted Total intrinsic value of options exercised (in 000) Total grant-date fair value of options vested (in 000) Restricted Stock Units (RSU)/Performance Stock Units (PSU) Total number of RSUS/PSUs granted (in 000) Weighted average grant-date fair value of RSUS/PSUs granted Total intrinsic value of RSUS/PSUS converted (in 000) Total grant-date fair value of RSUS/PSUs vested (in 000) $275,745 $224,663 $327,860 $9,838 $15,506 $23,122 2,754 $116.87 2,634 $108.75 $109.92 2,824 $333,951 $260,287 $380,269 $275,234 $232,141 $264,923 From the table above, we see that in 2019, PepsiCo issued 1,286,000 stock options with fair value of $10.89 per option and 2,754,000 RSUS/PSUS with a fair value of $116.87 per unit. The average vesting period of the stock options is 5 years and the average restriction period of RSUS/PSUs is 3 years. 1. Calculate the stock compensation expenses for 2019 relating to the stock options and RSUS/PSUs granted during the year 2019. 2. Explain why the average fair value of a RSU/PSU of $116.87 is so much higher than the average fair value of stock option of $10.89. 3. In what respect, stock options and restricted stock units as the stock-based compensation plans are the same? The following is a summary of share-based compensation data of PepsiCo (from 2019 annual report): Stock Options 2019 2018 2017 Total number of options granted (in 000) 1,286 1,429 1,481 Weighted average grant-date fair value $10.89 $9.80 $8.25 of options granted Total intrinsic value of options exercised (in 000) Total grant-date fair value of options vested (in 000) Restricted Stock Units (RSU)/Performance Stock Units (PSU) Total number of RSUS/PSUs granted (in 000) Weighted average grant-date fair value of RSUS/PSUs granted Total intrinsic value of RSUS/PSUS converted (in 000) Total grant-date fair value of RSUS/PSUs vested (in 000) $275,745 $224,663 $327,860 $9,838 $15,506 $23,122 2,754 $116.87 2,634 $108.75 $109.92 2,824 $333,951 $260,287 $380,269 $275,234 $232,141 $264,923 From the table above, we see that in 2019, PepsiCo issued 1,286,000 stock options with fair value of $10.89 per option and 2,754,000 RSUS/PSUS with a fair value of $116.87 per unit. The average vesting period of the stock options is 5 years and the average restriction period of RSUS/PSUs is 3 years. 1. Calculate the stock compensation expenses for 2019 relating to the stock options and RSUS/PSUs granted during the year 2019. 2. Explain why the average fair value of a RSU/PSU of $116.87 is so much higher than the average fair value of stock option of $10.89. 3. In what respect, stock options and restricted stock units as the stock-based compensation plans are the same?
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Answer To calculate the stock compensation expenses for 2019 relating to the stock options and RSUsPSUs granted during the year we need to consider th... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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