Option Plan definition: Copy, customize, and use instantly
Introduction
The term "Option Plan" refers to a program established by a company that allows employees, executives, or directors the option to purchase company stock at a set price, usually as a form of compensation or incentive. It is essential for motivating employees to align their interests with the company’s long-term success and improving retention by offering potential financial benefits tied to the company's growth.
Below are various examples of how "Option Plan" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Option Plan" as a stock option grant system
This definition ties "Option Plan" to a system of granting employees the right to purchase shares in the company at a specified price.
"Option Plan" refers to a stock option grant system whereby employees are granted the right to purchase a specified number of shares at a predetermined price within a certain period.
Definition of "Option Plan" as a tool for long-term employee retention
This definition connects "Option Plan" to its role in retaining key employees over time by offering stock options.
"Option Plan" means a tool used by the company to retain key employees, where stock options are offered as an incentive for long-term commitment and performance.
Definition of "Option Plan" as a financial planning strategy for employees
This definition links "Option Plan" to a strategy used by employees for their long-term financial planning.
"Option Plan" refers to a financial planning strategy allowing employees to purchase company stock at favorable prices, thereby enabling them to invest in the company’s future while benefiting from its success.
Definition of "Option Plan" as a performance-linked incentive scheme
This definition applies "Option Plan" to a performance-linked incentive scheme that rewards employees based on individual or company performance.
"Option Plan" refers to a performance-linked incentive scheme where employees are awarded stock options based on meeting specific performance goals or benchmarks.
Definition of "Option Plan" as a means of company growth involvement
This definition ties "Option Plan" to employees' involvement in company growth through ownership of shares.
"Option Plan" means a means for employees to participate in the company’s growth by purchasing stock at a set price, making them more invested in the company’s long-term success.
Definition of "Option Plan" as an executive incentive program
This definition links "Option Plan" to an incentive program specifically aimed at executives to align their interests with company performance.
"Option Plan" refers to an executive incentive program where stock options are awarded to executives based on the company’s financial or operational success.
Definition of "Option Plan" as a retention tool for startups
This definition connects "Option Plan" to its use in startup companies to attract and retain talent.
"Option Plan" refers to a tool commonly used in startups to attract and retain employees by granting stock options that increase in value as the company grows.
Definition of "Option Plan" as a tax-advantaged investment opportunity
This definition ties "Option Plan" to its tax advantages, making it an attractive investment opportunity for employees.
"Option Plan" means a tax-advantaged investment opportunity where employees can buy company stock at a discount or favorable terms, reducing their tax liability on profits.
Definition of "Option Plan" as a stock purchase program with vesting requirements
This definition links "Option Plan" to a stock purchase program with specific vesting schedules tied to employment duration.
"Option Plan" refers to a stock purchase program that includes vesting requirements, ensuring employees must remain with the company for a set period before they can exercise their options.
Definition of "Option Plan" as an employee benefit in competitive job markets
This definition connects "Option Plan" to its role as an employee benefit in attracting talent in competitive job markets.
"Option Plan" refers to an employee benefit designed to attract top talent in competitive job markets by offering stock options that provide potential financial growth over time.
Definition of "Option Plan" as an ownership opportunity for employees
This definition links "Option Plan" to its purpose of providing employees with ownership opportunities in the company.
"Option Plan" means a program that provides employees the opportunity to own a portion of the company by exercising stock options at a predetermined price.
Definition of "Option Plan" as a method of compensating employees with company equity
This definition ties "Option Plan" to its use as a method of compensating employees by offering company equity.
"Option Plan" refers to a method of compensating employees through equity-based rewards, allowing them to purchase shares of company stock at favorable terms.
Definition of "Option Plan" as a tax-deferred benefit
This definition connects "Option Plan" to its tax-deferred nature, making it advantageous for employees who hold onto their options until a later date.
"Option Plan" refers to a tax-deferred benefit that allows employees to defer taxes until the options are exercised, offering them the opportunity to benefit from potential tax savings.
Definition of "Option Plan" as a compensation alternative in lieu of cash
This definition links "Option Plan" to an alternative form of compensation for employees, often used when cash is limited.
"Option Plan" means a compensation alternative where stock options are offered to employees in place of or alongside cash, providing the potential for future financial gain.
Definition of "Option Plan" as a reward for meeting company objectives
This definition connects "Option Plan" to the reward system based on meeting company or department objectives.
"Option Plan" refers to a reward system where stock options are granted to employees upon achieving specific company or departmental objectives.
Definition of "Option Plan" as an incentive for key company personnel
This definition ties "Option Plan" to its role in incentivizing key personnel to drive the company's success.
"Option Plan" means an incentive program specifically for key personnel, offering them stock options to encourage their active contribution to the company’s growth and profitability.
Definition of "Option Plan" as a way to increase employee engagement
This definition links "Option Plan" to a method for increasing employee engagement by providing a financial stake in the company’s performance.
"Option Plan" refers to a strategy for increasing employee engagement by giving employees the opportunity to purchase stock, thus linking their success with the success of the company.
Definition of "Option Plan" as a form of executive compensation with performance goals
This definition connects "Option Plan" to its use as part of executive compensation, tied to performance milestones.
"Option Plan" means a form of executive compensation that grants stock options with vesting based on the achievement of performance goals or benchmarks.
Definition of "Option Plan" as a flexible stock purchase program
This definition applies "Option Plan" to a flexible program where employees can choose when to exercise their options.
"Option Plan" refers to a flexible stock purchase program that allows employees to purchase shares at a predetermined price at their discretion, within a defined period.
Definition of "Option Plan" as an offering of stock options to attract investment
This definition links "Option Plan" to attracting investment in the company by offering stock options to investors and key stakeholders.
"Option Plan" means an offering of stock options to attract investment by giving investors a stake in the company’s growth and providing them with a potential future financial benefit.
Definition of "Option Plan" as a tool to reward employees with company ownership
This definition connects "Option Plan" to rewarding employees with ownership in the company, enhancing their commitment.
"Option Plan" refers to a tool used to reward employees by offering them the chance to purchase shares of the company, fostering a sense of ownership and loyalty.
Definition of "Option Plan" as a key benefit for company directors
This definition ties "Option Plan" to its use as a key benefit for directors of the company.
"Option Plan" means a key benefit program for company directors, where they are granted options to purchase company stock, motivating them to contribute to its success.
Definition of "Option Plan" as an employee benefit program
This definition connects "Option Plan" to an employee benefit program that grants stock options as part of compensation.
"Option Plan" refers to an employee benefit program where employees are granted stock options as part of their compensation package, allowing them to buy shares at a predetermined price.
Definition of "Option Plan" as a stock-based compensation agreement
This definition ties "Option Plan" to a stock-based compensation agreement aimed at incentivizing employees.
"Option Plan" means a stock-based compensation agreement where employees or executives are given the option to purchase shares in the company at a set price within a specific timeframe.
Definition of "Option Plan" as a method for aligning employee interests with company performance
This definition links "Option Plan" to a strategy for aligning employee interests with company success by offering stock options.
"Option Plan" refers to a strategy used by companies to align employees’ interests with corporate performance by offering stock options that increase in value as the company grows.
Definition of "Option Plan" as a retirement savings plan involving stock options
This definition connects "Option Plan" to a retirement savings plan that allows employees to purchase company stock at a discount.
"Option Plan" refers to a retirement savings plan in which employees are allowed to purchase company stock at a discounted price, with the intention of holding onto the shares for long-term financial growth.
Definition of "Option Plan" as a way to attract and retain talent
This definition ties "Option Plan" to its use in attracting and retaining top talent in competitive job markets.
"Option Plan" means a mechanism for attracting and retaining talent, where employees are granted options to purchase shares at favorable terms, thereby increasing their investment in the company’s future success.
Definition of "Option Plan" as an executive compensation tool
This definition connects "Option Plan" to its role in executive compensation by providing stock options as a performance-based reward.
"Option Plan" refers to a tool for compensating executives, where stock options are given as a reward based on the company’s performance and long-term growth.
Definition of "Option Plan" as a form of equity-based incentive
This definition links "Option Plan" to equity-based incentives designed to motivate employees.
"Option Plan" means an equity-based incentive plan in which employees are granted the right to purchase shares of company stock at a predetermined price, typically linked to long-term performance goals.
Definition of "Option Plan" as a plan for offering ownership opportunities to employees
This definition ties "Option Plan" to a plan that provides employees with ownership opportunities by granting stock options.
"Option Plan" refers to a plan that provides employees with the opportunity to become partial owners of the company through the grant of stock options at a set price over time.
Definition of "Option Plan" as a performance incentive program
This definition connects "Option Plan" to a performance incentive program where stock options are used to encourage high performance.
"Option Plan" means a performance incentive program that grants stock options as a reward for meeting specific performance milestones or achieving corporate goals.
Definition of "Option Plan" as a compensation arrangement for company directors
This definition links "Option Plan" to its use as a form of compensation for company directors.
"Option Plan" refers to a compensation arrangement for directors, where they are granted options to purchase shares of the company as part of their overall remuneration package.
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.