Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated.

Compute the amount of compensation expense for 2022 and 2023. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50))
Compensation expense
($ in millions)
2022
2023

Computing the amount of Compensation expenses (which sometimes can comprise of the salaries, payroll taxes, recruiting costs, benefits and bonuses. it is generally an important or integral part of a company's day to day costs) for 2022 and 2023 are as follows

Compensation expense for 2021 = 12000000*$2*1/3 = $8000000

Compensation expense for 2022 = 12000000*95%*$2%*2/3 - 8000000 = $7200000

Compensation expense for 2023 = 12000000*95%*$2*3/3 - (8000000+7200000)

= $7600000