Not a stock based compensation expense question...

Just kidding, of course it is! Have a couple SB's if anyone can help out.

How is the amount of stock based compensation expense reported on the income statement and the dilution impact affected by the share price of the company? Put another way, if a company's share price is increasing over one time period, and decreasing over another time period, how will the stock based compensation expense and dilution impact differ between each time period? Also, how does this vary between cash settled and equity settled options?

Am asking this because a company I'm researching uses a significant amount of SBC, and am curious if this could be an incentive for the company to want to make sure it has a high share price.

Thanks in advance