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stock options
- The right to purchase a company's shares at a future date at an agreed price. Companies often give stock options to their executives as an incentive to improve the company's performance and boost its share price. If the share price has risen above the agreed price of the option by the time the option is exercised, the executive stands to make a considerable profit.
Example Sentences
In addition to supporting high salary jobs, tech companies offer employees stock options, so the state benefits from taxing capital gains, the profit earned when the shareholder sells their stock for a higher price.
It also split the managerial class: You have CEOs and other top management getting rewarded with stock options, so they become completely aligned with the owners of capital.
Stock market volatility tends to depress initial public offerings and exercises of stock options, which are two important sources of capital gains that boost state revenues.
Mostly to reduce corporate and income taxes, companies tend to keep the cash components of their executives’ pay as meager as possible, as opposed to stock and stock options.
The pay package came in the form of stock options, according to The New York Times, and now may be worth over $100 billion since Tesla stock soared after President-elect Donald Trump’s victory in November.
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