On January 1, 2018, Farmer Fabrication issued stock options for 600,000 shares to a division manager. The options have an estimated fair value of $11 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 5% in three years.

What is the revised estimate of the total compensation?