What was the fair value of Benihana options that vested in the year ended December 31, 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| Shares | Weighted average grant date fair value | |
|---|---|---|
| Non-vested stock options at January 1, 2020 | 536,000 | $ 0.87 |
| Granted | — | — |
| Vested | (272,667) | 0.75 |
| Cancelled, expired or forfeited | — | — |
| Non-vested stock options at December | 263,333 | $ 0.99 |
| 31, |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the fair value of options that vested in the year ended December 31, 2020, was $0.2 million. This figure represents the estimated value of stock options that employees or executives earned and became entitled to exercise during that year.
For a prospective Benihana franchisee, this information provides insight into the company's executive compensation structure and how it uses stock options as part of its overall compensation strategy. While this specific figure doesn't directly impact franchisees, it contributes to understanding the financial health and management practices of Benihana.
It's important to note that the fair value is an accounting estimate and may not reflect the actual value realized by the individuals who vested in those options. Factors such as the market price of Benihana's stock at the time of exercise would ultimately determine the actual value received.