Incentive Stock Option (Noun)
Meaning
An option granted to corporate executives if the company achieves certain financial goals.
Classification
Nouns denoting acts or actions.
Examples
- The company offered its executives an incentive stock option plan to motivate them to meet the quarterly targets.
- The new CEO was granted a large incentive stock option package as part of her employment contract.
- Incentive stock options are often used to align the interests of executives with those of shareholders.
- The board of directors approved an incentive stock option plan to reward employees for their hard work in achieving the company's financial goals.
- The value of the incentive stock option was tied to the company's stock price, which was expected to increase significantly in the coming years.