Originally Posted by
gqmw
Grant price does not affect vesting price.
Grant price is just to determine the number of units to award - for example, if you were entitled to an LTI award of $10k and the share price at grant is $10, you would get 1,000 units. As previously mentioned by others, the grant price is typically based on a 5-20 day average (as opposed to just close price) to smooth out any volatility.
At vesting, your payout will be the (1,000 units + dividends reinvested) x price at vesting.
PSUs are performance contingent, but they work the exact same way. Only difference is that at the end of the performance period, there is a performance multiplier that is applied. So the payout would be: (1,000 units + dividends reinvested) x price at vesting x performance multiplier.