Deloitte
Accounting Research Tool
...
On the Radar

Share-Based Payment Awards

November 2021
Image cannot be displayed

On the Radar
Share-Based Payment Awards

To incentivize employee performance and align the interests of employees and shareholders, entities often grant share-based payment awards — including stock options, restricted stock, restricted stock units, stock appreciation rights, and other equity-based instruments — in exchange for services. To a lesser extent, entities also grant such awards to compensate vendors for goods and services or as sales incentives to customers.

Footnotes

1
Cheap stock refers to issuances of equity securities before an IPO in which the value of the shares is below the IPO price.