(4) Performance-Based Share Option Compensation
Plan
On January 1, 2016, Pierce Company establishes a
performance-based share option plan for its 80 top executives. The
terms of the plan are that each executive is granted a maximum of
200 options after completing a 3-year service period. The exact
number of options granted, however, depends on the percentage
increase in sales over the 3-year period. The terms are: (1) if
sales increase between 0% and 3%, each executive is granted 90
options;...