beancounter11 wrote: Yes I understand it. It is mark to market, which basically means that the phantom share units are recorded at fair market value every Quarter. So basically the formula would be:
Opening balance
add: units issued
Less: units expired
Less: Units vested
= ending balance
Expenses would be the change in share price multiplied by the change in th balance. I can't calculate it exactly because we won't know the value and date of the issued and the date of the vesting.
When they hit the vesting date, they are paid out in cash versus a stock option which needs to be exercised.
A rough calculation based on your numbers would be share price change of (7.81(today's close) -10.12= $2.31.
You would then multiply the $2.31 * o/s (roughly 761,000 using your average outstanding) this would be an expense recovery of $1,757,910.
Now a big fluctuation could be when the vesting date is? I am not sure if this is any of the company's filing I am not going to look for it right now. For example if they already vested early in the Q then the expenses is already booked, if they vest today then we will see a bigger recovery. I think this is likely a mute point because the greedy management usually just issue more phantoms when the others vest so it may not have that big of an impact.
Regardless the general thing is the phantom shares are relatively static then the share price change either gives us a big expense or a big expense recovery. This is the reason the plan is flawed when looking at comparisions of G&A Q vs Q because the share price change is very random.
Have a great week end everybody.
lscfa wrote: I'm not sure about that. Anyone know how to value these damn phantom shares?
| $US | Fair value liability | Expensed to SG&A | No of Shs o/s | Vested | Ending Sh pr |
| Jun30/20 | 4,699,000 | 4,308,000 | 1,042,000 | 601,000 | 9.60 |
| Mar31/20 | 4,593,000 | (697,000) | 1,328,000 | 0 | 4.76 |
| Dec31/19 | 5,290,000 | | 1,350,000 | 0 | 6.20 |
| | | | | | |
| $US | Fair value liability | Expensed to SG&A | No of Shs o/s | Vested | Ending Sh pr |
| Jun30/21 (e) | | | 571,000 | 700,000 | |
| Mar31/21 | 7,808,000 | 2,465,000 | 951,000 | 0 | 10.12 |
| Dec31/20 | 5,344,000 | | 985,000 | 0 | 7.76 |
| | | | | | |
donmayne wrote: If the share price closes at a low at the end of Q2, will that reverse all the phantom share charges for the prior three quarters? That would amount to .075 per share boost to quarterly income.
That phantom share plan was a bad plan poorly executed. It has cost the company by the wild volatility that it generates in the earnings. It was so short sighted not to have abandoned that plan and replaced it with a better plan that provides an equivalent incentive.
In any event, I expect a reversal of phantom share expenses will boost Q2s income.