Can someone tell me where all of the money is going every time an MIP participant quits. Think about it. We have management leaving the organization in record numbers, leaving behind their RSUs (reserve stock units). Where is that money going??
The stock is on the books as being issued, the expense is not paid out until the stocks vest.
To answer your question, it looks to me like the company would realize the savings on the vested stocks that were not excercised.
The same thing might apply to when a union employee has had money put into the pension plan for up to 4 years and 11 months by UPS. What happens if he leaves before vested or goes into management before vested?