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Cash-Settled Award

A stock grant whose value at vesting or payout (or at option/SAR exercise) is delivered in cash. This is sometimes simply called a cash award. Performance units and restricted units are types of cash-settled awards. In these awards, tax is withheld from the cash. While these grants usually do not involve market sales and help to preserve company shares, they trigger liability accounting for the company. Compare stock-settled award.

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