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Employee Stock Option

   Also found in: Acronyms, Wikipedia 0.01 sec.
employee stock option

Employee Stock Option
A non-tradeable call option giving an employee at a publicly-traded company the right to buy shares in that company for a certain price. Employee stock options are often a part of compensation for major and mid-level executives in large publicly-traded companies. If the share price for the company increases, employee stock options can be very profitable for the employee. Employee stock options have certain rules governing when and how they can be exercised. More commonly, they are simply called stock options.

Employee Stock Option
An option granted to an employee to purchase the employer's stock. Employee stock options to which special income tax treatment is accorded are known as statutory options.


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The ED, which would have required expense recognition for virtually all employee stock option plans, met with vociferous opposition in comment letters, public hearing testimony and the press.
All 85 workers will be eligible to participate in the foundry's employee stock option plan (ESOP).
Including employee stock option expense, for the third quarter of 2006 the Company reported a net profit of $3.
 
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