stock option plan
- 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
- The company has instituted a stock option plan to incentivize employees by aligning their interests with those of the shareholders.
- Under the terms of the stock option plan, she was eligible to purchase shares at a favorable price.
- The stock option plan allowed employees to profit potentially from the increase in the company's market value.