What Vanward calculates
Option values, vested units, compensation expense and award rollforwards.
The method
- Calculate call value with Black-Scholes: discounted share price weighted by the normal probability, less discounted strike price weighted by the second normal probability. Use intrinsic discounted value when term or volatility is zero.
- Multiply units by fair value and recognize cumulative service cost using straight-line or graded attribution. Apply the selected forfeiture policy, never below vested value. The simplified expected term is the average of weighted vesting years and contractual years. Peer volatility uses similarity weights or fully explained company overrides; measured volatility annualizes the sample variance of daily log returns by 252 trading days. Period expense is the change in cumulative rounded cents.
What the company decides
Share price, strike, expected term, volatility, dividend yield, risk-free rate, vesting terms, forfeiture estimates, attribution and policy elections. These inputs and judgments are outside the guarantee.
Where it shows in Vanward
Stock compensation step, option grant valuations, schedules and proposed entries.
Method change log
- 2026-11-09 · 1.0 published