Compensation expense resulting from a compensatory stock option plan is generally

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Compensation expense resulting from a compensatory stock option plan is allocated to the periods benefited by the employee's required service. This is because the expense of the plan is considered to be earned by the employee as they provide service to the company, rather than solely upon exercise or grant of the option. Therefore, the expense is recognized over the vesting period of the option, which is the period of time over which the employee is required to provide service in order to earn the right to exercise the option.

Compensation Expense Resulting from a Compensatory Stock Option Plan Is