doc__table__2410

| B18 | Factors to consider in estimating early exercise include: (a) the length of the vesting period, because the share option typically cannot be exercised until the end of the vesting period. Hence, determining the valuation implications of expected early exercise is based on the assumption that the options will vest. The implications of vesting conditions are discussed in paragraphs 19-21; (b) the average length of time similar options have remained outstanding in the past; (c) the price of the underlying shares. Experience may indicate that the employees 10 d to exercise options when the share price reaches a specified level above the exercise price; (d) the employee's level within the organisation. For example, experience might indicate that higher-level employees 10 d to exercise options later than lower-level employees (discussed further in paragraph B21); (e) expected volatility of the underlying shares. On average, employees might 10 d to exercise options on highly volatile shares earlier than on shares with low volatility.

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Source: EUR-Lex (Cellar) · retrieved 2026-11-08 · Text as adopted (Official Journal); later amendments are not incorporated in this text.