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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
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.
Critics say that would affect startup founders, whose company valuations fluctuate and whose compensation is based on stock options.
Support for the pay award, made up of stock options, will come as a relief to Mr. Musk’s admirers, who feared that rejection would prompt him to spend less time managing Tesla or even quit.
But its stock options, so it’s always going up and down.
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