Implicit service period

The implicit service period is a period of time not explicitly stated in a compensation agreement, but which can be inferred from the facts and circumstances of the arrangement. For example, an agreement states that stock options will vest when a product rollout has been completed in a new sales territory; if it is probable that the rollout will be completed in two years, then the implicit service period is two years.

Related Courses

Accounting for Stock-Based Compensation