Question

On January 1, 2019, a compensation plan with a stock option (stock option plan) was created...

On January 1, 2019, a compensation plan with a stock option (stock option plan) was created for senior management (senior executives) in which it is stipulated that they can receive the right to purchase up to 18,000 shares common at $ 40 per share. The par value of the share is $ 10. On February 1, 2019 the options were granted to the executives. Options are non-transferable and must continue as employees in order to exercise the option. The options expire on February 1, 2023. The company assumes that the services that these executives will offer will be performed in the same proportion for the years 2019 and 2020. It is estimated that the fair value of the options granted to these executives is $ 1,900,000.

Assuming that all the executives remained working in the company, the compensation expense in shares for the year 2020 will be:

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