grantdate

Grant date is the date on which a company commits to issue a stock-based compensation award to an employee, such as stock options or restricted stock units (RSUs). On the grant date, the terms of the award—such as the number of shares, exercise price, vesting conditions, and expiration—are fixed, and the employee becomes eligible to receive the award, subject to any service or performance conditions. The grant date is distinct from the vesting date and the exercise date.

In accounting and reporting, the grant date is used to determine the award’s fair value and the start of expense recognition. Under major accounting frameworks, the grant-date fair value is recognized as compensation expense over the requisite vesting period. For stock options, fair value is estimated using models such as Black-Scholes or binomial; for RSUs, fair value is typically the market price on the grant date. Any expected forfeitures are incorporated into the expense, and actual forfeitures reduce recorded expense when they occur.

Practical considerations include tax treatment, which in many jurisdictions occurs at vesting or exercise rather than grant. The grant date also influences disclosures, potential dilution calculations, and the timing of financial statement impacts. While the grant date marks the formal offer of the award, actual transfer of shares depends on meeting vesting or performance conditions.