Performance condition

A performance condition is any situation that can alter the exercisability or vesting of an equity-based award, or other factors that impact the award's fair value. A performance condition relates to either the time period over which an employee provides services, or the completion of a targeted performance goal. Examples of performance conditions are working for the employer for a period of five years, or increasing the profitability of the employer by 20%.

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Accounting for Stock-Based Compensation