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Stock Option Plan

A long-term performance incentive plan designed to assist a company and its stockholders by providing economic incentives to employees, directors, and consultants to the company in the form of options to acquire common stock of the company at a fixed price and during a fixed term. Stock options are usually subject to vesting restrictions so that the option holder has an incentive to remain with the company for at least the vesting period in order to receive all of the options. Since options have value only if the stock price of the common stock that can be acquired increases, the option holder has an additional incentive as an option holder, not just as an employee, to help the company achieve operational and financial success.

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Finance & Investment

Category: Business

Total terms: 319

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