Don’t Overlook That Post-Termination Exercise Window

Post-termination exercise windows have historically been a seemingly minor component of an award’s design. But recently, more companies are modifying certain awards to lengthen the post-termination exercise window or are granting new awards with lengthy exercise windows.

This Issue Brief details how lengthy post-termination exercise windows can grow an award’s appeal, why modifications to the window may make sense for key terminating employees, and how to think through the accounting and fair value implications of such features.


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