This excerpt taken from the VRSN 10-Q filed Nov 5, 2007.
Market-based Restricted Stock Units
During the three months ended September 30, 2007, the Compensation Committee of our Board of Directors approved grants of 580,406 market-based restricted stock units related to stock-price appreciation and a service
VERISIGN, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
condition. The Company used the Monte-Carlo simulation option-pricing model to determine the fair value of these awards. The Monte-Carlo simulation option-pricing model takes into account the same input assumptions as the Black-Scholes model; however, it also further incorporates into the fair-value determination, the possibility that the market condition may not be satisfied and the impact of the possible differing stock price paths. Compensation costs related to awards with a market-based condition will be recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. The stock-based compensation expense is recognized over the requisite service period for each award. The Company recorded $0.5 million of stock-based compensation for the market-based awards for the three months ended September 30, 2007.