the Groupâ€(tm)s long-term unit-based compensation scheme whereby executives are awarded options to acquire units at a predetermined price. Awards under the stock option plan typically vest over periods of three to five years and have expiry dates, the date after which unexercised options lapse, of between 6 and 10 years from the date of grant.
A plan that allows employees to buy their company stock at a discount and get a tax break when they sell it.
an organized program for employees of a corporation allowing them to buy its shares
A long-term performance incentive plan intended to align the interest of company employees and its stockholders by providing economic incentives to employees, directors, and consultants if a company performs well and the values of its shares increase 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 be able to exercise 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, to help the company achieve operational and financial success.
Stock options are an employer's promise that the employee may buy at a future date a set number of shares at the price set today. Discounted Stock Options. Options in which the strike price is less than the market price. Incentive Stock Options (ISOs). Stock grants that have more tax advantages than the NSO: ISOs are not taxed either when granted or exercised. Nonqualified Stock Options (NSOs). Stock grants that do not have favored tax treatment. Unlike with ISOs, the employee pays taxes at the ordinary income rate if the NSOs are sold for a profit (a price higher than the strike price). Exercise an Option. Exercising an option means paying the company the strike price, at which point the option is traded as a stock. For example, an employee buys the stock at the strike price and then sells it at the market price. An employee can exercise only vested options. Strike Price. The price that the employer guarantees to the employee when the options were first granted. Once a strike price is set, the employee can buy any of the vested options at that price, regardless of the market price for those shares.
Surviving stockholders have the option to purchase or not purchase the shares of a deceased stockholder.
An organizational program that it that grants employees the option of purchasing a specific number of stock in the company at a future date.
provides employees with the opportunity to purchase enterprise shares at a fixed price within a specified time period. Page 139
