incentive option
1
7.7
- noun
- /ɪnˈsɛntɪv ˈɑpʃən/
- Specialized
- The company offered an incentive option that would allow executives to buy stock at a lower price if sales targets were achieved.
Examples
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Now when you think of options, a lot of options are what are called incentive options, OK.
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As part of their compensation package, many executives received an incentive option tied to the company's annual profits.
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The board implemented an incentive option to encourage executives to improve overall company performance over the next fiscal year.
Synonyms
124
7.4
A right to buy or sell something at a set price before a set time
40
4.8
A right to buy company shares later at a fixed price, often given to employees
1
7.4
An offer that lets employees buy company shares later if the company meets its goals
Antonyms
Surface Forms
Morphology
The meaning is directly compositional: 'incentive' (a reward to motivate) modifies 'option' (a right to buy/sell), yielding an 'option offered as a reward/ motivator.' A B1 learner who knows both words can readily infer this general sense (an option given to motivate behavior), even if they may not know the technical stock-market specifics.
Etymology
Incentive option combines incentive, a reward to encourage people to work harder, and option, a choice to buy something later. Think of it as a coupon that lets a company leader 'buy stock at a fixed price' if the company 'meets goals', so the phrase means a reward that lets someone buy shares when targets are reached.