Question

Company Co. has 1,000 employees and it decides to grant each of the employees 200 share
options as part of its new rewards plan. The options are exercisable over 5 years and subject only
to the condition that the company's stock price must be at least 30% higher than its original issue
price. Company Co.'s share-based payments are subject to:
Service and market performance conditions
Service condition
Non-vesting condition
Non-market performance conditions

Answer 1

Company Co's share-based payments are subject to Non-vesting conditions. Hence, Option C is the correct statement.

What are share-based payments?

Share-based payment agreements are transactions wherein a third party is entitled to acquire equity instruments of the entity (or any other institution entity) or cash amounts primarily based totally on the cost of such equity instruments in exchange for items or services.

Hence, Company Co's share-based payments are subject to Non-vesting conditions. Option C is the correct statement.

learn more about share-based payments:

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