Final answer:
The fair value of the award in a restricted stock unit plan should be determined when the restriction is removed. The correct option is c. when the restriction is removed
Step-by-step explanation:
The subject of this question is Business and it is at the College level.
The fair value of the award in a restricted stock unit plan should be determined when the restriction is removed. This is because the value of the award is based on the market price of the company stock at that time when the restriction on selling or transferring the stock is lifted.
For example, if an employee chooses to receive company stock as part of their restricted stock units award, they may have to wait for a certain period of time or meet certain performance targets before they can fully own the stock.
Once the restriction is removed and the employee can freely sell or transfer the stock, the fair value of the award can be determined. The correct option is c. when the restriction is removed