Grant Date Fair Value

Grant date fair value is the dollar value a company assigns to an equity award on the day it is granted, calculated under the accounting standard ASC 718, and it is the figure reported in the Summary Compensation Table’s stock and option award columns.

For a time-based restricted stock unit, this is generally straightforward: units granted times the stock price that day. For a stock option, it requires an options-pricing model (typically Black-Scholes or a binomial model) that estimates value based on the stock’s volatility, the option’s term, and other inputs. For a performance stock unit, it may further require a probability estimate of whether the performance condition will be met.

The figure is fixed at the moment of grant and does not update afterward — it is not what the award is worth today, or what it will be worth when it vests. A reader tracking what an award actually turned out to be worth needs a later figure, not this one.

The $20,308,799 grant-date fair value Marvell reports for Sandeep Bharathi's July 15, 2025 PSU award is an accounting estimate made the day of grant — not a promise of what the award will ultimately be worth when it vests.