What is the maximum term for Corcoran stock options?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
averaged over a threeyear performance period ending December 31, 2026. Final payouts are subject to a potential 15% upward or downward adjustment based on the Company's relative total stockholder return against its compensation peer group (with double weighting for direct real estate competitors). Consistent with FASB ASC Topic 718, the grant date for each third of the 2024 PSU award will occur as performance targets are established annually. The fair value for each third of the 2024 PSU award is estimated using the Monte Carlo Simulation method on its respective grant date, with compensation expense recorded over the corresponding performance year and adjusted based on actual performance relative to the establishe
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, stock options have a maximum term of ten years. These options vest over a four-year period, with 25% of the options vesting on each anniversary of the grant date. The exercise price for these options is equal to the closing sale price of the company's common stock on the grant date.
As of December 31, 2024, there were 1.4 million options outstanding with a weighted average exercise price of $21.97. All of these options were exercisable with an intrinsic value of zero and a weighted average remaining contractual life of 3.3 years. It is important to note that Corcoran has not granted any options since 2019, and any forfeiture or exercise activity in 2024 was immaterial.
For a prospective franchisee, understanding the terms and conditions of stock options is crucial, although it appears that Corcoran has not been actively granting these options recently. The vesting schedule and the exercise price mechanism are typical components of stock option plans, designed to incentivize performance and align the interests of the option holders with the company's success. Given that no options have been granted since 2019, it would be prudent for a potential franchisee to inquire about the likelihood of future stock option grants and their potential impact on equity and compensation structures within the franchise.