Incentive Stock Option definition: Copy, customize, and use instantly
Introduction
The term "Incentive Stock Option" refers to a type of employee stock option that provides certain tax benefits under specific conditions. It is often granted to employees as part of their compensation package to motivate and retain them.
Below are examples of how "Incentive Stock Option" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Incentive Stock Option" as a tax-advantaged stock option
This definition ties "Incentive Stock Option" to tax benefits.
"Incentive Stock Option" means a stock option that qualifies for favorable tax treatment under Section 422 of the Internal Revenue Code, provided it meets certain statutory requirements.
Definition of "Incentive Stock Option" as an employee benefit
This definition connects "Incentive Stock Option" to employee compensation.
"Incentive Stock Option" refers to a stock option granted to employees, allowing them to purchase company stock at a fixed price and offering potential tax advantages if held for the required period.
Definition of "Incentive Stock Option" as a retention tool
This definition applies "Incentive Stock Option" to employee retention.
"Incentive Stock Option" means an equity-based compensation tool used to attract and retain employees by granting them the right to purchase company shares under specific terms and conditions.
Definition of "Incentive Stock Option" as a long-term incentive
This definition links "Incentive Stock Option" to long-term employee motivation.
"Incentive Stock Option" refers to a stock option designed to encourage long-term commitment by providing employees with the potential for financial gain through future stock appreciation.
Definition of "Incentive Stock Option" as a performance reward
This definition ties "Incentive Stock Option" to rewarding performance.
"Incentive Stock Option" means a stock option awarded based on individual or company performance metrics, offering the recipient a chance to purchase company shares under favorable terms.
Definition of "Incentive Stock Option" as an equity incentive
This definition connects "Incentive Stock Option" to equity-based compensation.
"Incentive Stock Option" refers to an option that enables employees to purchase equity in the company, aligning their interests with the company's growth and success.
Definition of "Incentive Stock Option" as a statutory option
This definition links "Incentive Stock Option" to legal frameworks.
"Incentive Stock Option" means a stock option granted under a specific statutory framework, allowing employees to benefit from preferential tax treatment upon meeting certain criteria.
Definition of "Incentive Stock Option" as a vesting-based reward
This definition applies "Incentive Stock Option" to vesting schedules.
"Incentive Stock Option" refers to a stock option that becomes exercisable over time, incentivizing employees to remain with the company and contribute to its growth.
Definition of "Incentive Stock Option" as a stock ownership tool
This definition ties "Incentive Stock Option" to fostering ownership.
"Incentive Stock Option" means a mechanism through which employees can gain ownership in the company by purchasing shares at a favorable price.
Definition of "Incentive Stock Option" as a compensation strategy
This definition connects "Incentive Stock Option" to compensation planning.
"Incentive Stock Option" refers to a strategic element of total compensation, designed to provide employees with long-term financial incentives tied to the company's performance.
Definition of "Incentive Stock Option" as a startup equity option
This definition links "Incentive Stock Option" to startup environments.
"Incentive Stock Option" means a stock option commonly granted in startup companies to attract top talent by offering a stake in the company's future success.
Definition of "Incentive Stock Option" as a retention bonus
This definition applies "Incentive Stock Option" to retention-focused rewards.
"Incentive Stock Option" refers to a stock option granted as part of a retention bonus program, encouraging employees to remain with the company over a set period.
Definition of "Incentive Stock Option" as a growth alignment tool
This definition ties "Incentive Stock Option" to aligning employee goals with company growth.
"Incentive Stock Option" means a stock option designed to incentivize employees to actively contribute to the company's growth, with rewards linked to the appreciation of company stock.
Definition of "Incentive Stock Option" as a competitive advantage
This definition connects "Incentive Stock Option" to recruitment strategies.
"Incentive Stock Option" refers to a stock option used by companies to gain a competitive edge in attracting and retaining top-tier talent by offering equity-based rewards.
Definition of "Incentive Stock Option" as a succession planning tool
This definition applies "Incentive Stock Option" to leadership transitions.
"Incentive Stock Option" means a stock option granted to key personnel as part of a succession plan to ensure continuity in leadership and alignment with company objectives.
Definition of "Incentive Stock Option" as a wealth-building mechanism
This definition ties "Incentive Stock Option" to long-term employee financial planning.
"Incentive Stock Option" refers to a stock option designed to help employees build wealth over time by allowing them to benefit from stock price appreciation under favorable tax conditions.
Definition of "Incentive Stock Option" as an executive compensation tool
This definition ties "Incentive Stock Option" to executive pay structures.
"Incentive Stock Option" means a stock option specifically tailored for executives as part of their compensation package, rewarding leadership performance and long-term contributions.
Definition of "Incentive Stock Option" as an innovation reward
This definition connects "Incentive Stock Option" to fostering innovation.
"Incentive Stock Option" refers to a stock option granted to employees who significantly contribute to innovative projects, driving the company's growth and success.
Definition of "Incentive Stock Option" as a retention strategy for high performers
This definition links "Incentive Stock Option" to retaining top-performing employees.
"Incentive Stock Option" means a stock option awarded to high-performing employees to motivate continued excellence and loyalty to the company.
Definition of "Incentive Stock Option" as a tax-efficient equity grant
This definition applies "Incentive Stock Option" to tax optimization.
"Incentive Stock Option" refers to a stock option structured to provide tax efficiency for employees while aligning their interests with the company’s success.
Definition of "Incentive Stock Option" as an employee engagement tool
This definition ties "Incentive Stock Option" to boosting employee engagement.
"Incentive Stock Option" means a stock option granted to employees as part of a broader effort to engage and involve them in the company’s growth and decision-making processes.
Definition of "Incentive Stock Option" as a deferred compensation mechanism
This definition ties "Incentive Stock Option" to long-term financial planning.
"Incentive Stock Option" refers to a stock option structured to defer immediate compensation and provide employees with long-term financial benefits aligned with stock performance.
Definition of "Incentive Stock Option" as a team-building incentive
This definition connects "Incentive Stock Option" to fostering collaboration.
"Incentive Stock Option" means a stock option designed to encourage teamwork by rewarding collective performance and shared success within the company.
Definition of "Incentive Stock Option" as an international employee reward
This definition applies "Incentive Stock Option" to global workforce strategies.
"Incentive Stock Option" refers to a stock option granted to employees in international markets, tailored to comply with local tax regulations while fostering global employee retention.
Definition of "Incentive Stock Option" as a company loyalty tool
This definition ties "Incentive Stock Option" to enhancing loyalty.
"Incentive Stock Option" means a stock option offered as a reward for long-term service, encouraging employees to remain committed to the company’s success.
Definition of "Incentive Stock Option" as a stock price hedge
This definition ties "Incentive Stock Option" to managing stock price risk.
"Incentive Stock Option" refers to a stock option designed to provide employees with a hedge against future stock price volatility by locking in a predetermined purchase price.
Definition of "Incentive Stock Option" as a partnership alignment tool
This definition connects "Incentive Stock Option" to fostering collaboration with stakeholders.
"Incentive Stock Option" means a stock option granted to align interests between employees and key stakeholders, promoting shared goals and mutual success.
Definition of "Incentive Stock Option" as a knowledge transfer incentive
This definition ties "Incentive Stock Option" to promoting mentorship.
"Incentive Stock Option" refers to a stock option awarded to senior employees as an incentive to mentor and transfer critical knowledge to newer team members, ensuring organizational continuity.
Definition of "Incentive Stock Option" as a financial security tool
This definition connects "Incentive Stock Option" to providing financial stability.
"Incentive Stock Option" means a stock option structured to provide employees with a financial safety net by allowing them to invest in company stock at advantageous terms.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.