FASB suggests the formula weighted average vesting contract term2. Once each portion vests you can sell the shares. The total gives the weighted average vesting rate which is reflected in the bill.
Its exercise price is 10 and the average market value during the period is 11.
This measures the amount of time from. Once each portion vests you can sell the shares. For example a 10-year grants contract term is 10 and a 7-year grants contract term is 7. The first step is to determine the weighted average remaining time to vesting for each tranche.