stock option plan

Definition of "stock option plan"
  1. A compensation arrangement that offers employees the opportunity to purchase the company's stock at a predetermined price, and to do so at any point within a specified timeframe, often used when the stock's market value is expected to increase
How to use "stock option plan" in a sentence
  1. The company has instituted a stock option plan to incentivize employees by aligning their interests with those of the shareholders.
  2. Under the terms of the stock option plan, she was eligible to purchase shares at a favorable price.
  3. The stock option plan allowed employees to profit potentially from the increase in the company's market value.

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