On 1 July 2013, Leo Limited Granted 250 Options to Each

On 1 July 2013, Leo Limited granted 250 options to each of its 50 employees. The options are conditional on the employees remaining with the company for the 2 year vesting period. The options have a fair value of $10 at vesting date. In addition, the shares will vest as follows:
On 30 June 2014 if the company's earnings have increased by more than 15%
On 30 June 2015 if the company's earnings have increased by more than 12% averaged across the 2 year period
At 30 June 2014 Leo's earnings have increased by 12% and 3 employees have left.
The company expects that earnings will continue to increase at a similar rate during the year to 30 June 2015 and that the shares will vest at that time. It also expects that a further 4 employees will leave during the year.
The remuneration expense for the year ended 30 June 2014 for Leo is:

A) $35 833
B) $53 750
C) $58 750
D) $117 500

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free