stock-option-grant

Vocabulary Word

Definition

'Stock option grant' refers to a company's offer allowing its employees to buy some of its stocks at a fixed price. The employee can exercise this option after a predetermined period or upon achieving specific targets.

Examples in Different Contexts

As a recruitment tool, stock option grants can attract top talent by offering potential financial benefits beyond salary. A recruiter might state, 'Our stock option grants help differentiate us in the job market, attracting candidates who are looking for both competitive salaries and growth opportunities.'

Practice Scenarios

Startup

Scenario:

We need to strategize on retaining our best performers even with our limited resources. What kind of benefits package would help us meet this objective?

Response:

A combination of competitive salary and stock option grants could help retain our top performers and foster a sense of ownership.

Leadership

Scenario:

We aim to encourage better performance from our management team. Any thoughts on how to best achieve this?

Response:

It might be helpful to offer a stock option grant. This would provide an incentive for better performance and a sense of shared company success.