employee stock option

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Related to employee stock option: Employee Stock Option Plan

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.
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employee stock option

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
The authors hope that FASB will reconsider the exercise date intrinsic method, thus rendering the accounting for the cost of employee stock options much less complex and much more accurate.
Commencing in 2011, corporations and mutual fund trusts that provide employee stock options will not be entitled to rely on various statements made by the CRA suggesting that withholding in respect of stock options may not be required or may be reduced.
While comparing the outcomes of panels A and B, though the agency theory is supported in both panels, the results are more favorable for the sorting and retention model in case of employee stock option plans.
Even though most employee stock options are granted at-the-money and so have zero intrinsic value (that is, market price minus exercise price), they have positive value at the grant date because of the volatility value of the option.
It generally assigns a higher value to options issued at a higher price, which isn't reflective of the employee stock options value.
The key distinction is that in all estimations, [[alpha].sub.2], the coefficient on employee stock option expense (ESOEXP) is not significantly positive (in fact, it is negative in 1996).
They construct a sample of employee stock option plans for 125 S&P 500 firms from 1994 to 1998.
Companies must consider their unique circumstances when deciding whether or not to reprice employee stock options.
Nevertheless, it is still possible for accounting theorists to argue that an employee stock option has some value--i.e., its value is not zero--and good accounting practice should recognize a value of some kind, if only to vindicate the traditional accounting concept of conservatism.
The contract - which covers about 10,000 workers - reportedly includes wage increases, an employee stock option plan and premium pay for bilingual reservation agents.

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