employee stock option

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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. Stock options in this sense 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, stock options can be very profitable for the employee. These stock options have certain rules governing when and how the option can be exercised.

employee stock option

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.
References in periodicals archive ?
Adoption of a global employee stock option program The Board has resolved to propose that the General Meeting shall resolve to adopt a global employee stock option program, according to which the employees of the group can be allocated, at no premium, in total not more than 1,000,000 stock options until the Annual General Meeting 2008.
While determining a value for employee stock options for any company is challenging, attempting to derive a value for employee stock options for a private, emerging growth company is nearly impossible.
Under SEC and FASB guidance, fair value for employee stock options could be based on the Black-Scholes formula or a lattice model.
public companies, for the most part, have not reflected the hypothetical or fair value costs of their employee stock options.
The top 10 questions most asked by CEOs and CFOs with respect to accounting for employee stock options and other stock-based compensation plans
This successful ESOARS auction supports the effectiveness of this method for valuing employee stock options," said W.
Unlike stock options that are traded on an exchange, employee stock options
As the memory of the technology boom fades, so does the once ubiquitous employee stock option.
Employee stock options - It is proposed that the Board of Directors shall have the possibility to grant employee stock options to the CEO and other members of the executive management.
This valuation method uses an auction of a tracking security -- ESOARS -- that we believe will prove to be the best way to obtain the fair market value of employee stock options," said W.
Further detail on the implementation guidance above can be found in the FERF report mentioned earlier, Valuing Employee Stock Options and Other Share-Based Payments: Complying with FAS 123R, which was published in February.

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