Stock Option Plan
/ˈstɒk ˈɒp.ʃən plæn/
Definitions
- (n.) A company-established program granting employees the right to purchase shares at a predetermined price within a specified period, aligning employee interests with corporate growth.
The board approved a new stock option plan to incentivize long-term employee performance.
Forms
- stock option plan
- stock option plans
Related terms
See also
Commentary
A stock option plan's precise terms—such as exercise price, vesting schedule, and expiration—are critical to its enforceability and tax treatment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.