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

For employee motivation, stock option grants serve as an incentive for employees to contribute to the company's success, knowing they can share in the financial rewards. An HR director might explain, 'By granting stock options, we motivate our team to drive innovation and achieve company objectives.'

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.