incentive stock option
- noun
- /ɪnˈsɛntɪv stɑk ˈɑpʃən/
- Specialized
:
opción de acciones de incentivo
- The company's financial growth triggered the release of incentive stock options to its senior managers.
- exercise incentive stock options
Examples
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As part of her compensation, the executive received an incentive stock option package that would vest after three years.
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Employees can benefit significantly from incentive stock options if the company's share price rises.
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The company offers an incentive stock option to its executives.
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Many employees are excited about the incentive stock option program.
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The company offered an incentive stock option plan to encourage employees to work towards higher performance goals.
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After meeting the quarterly sales targets, the manager was thrilled to receive his incentive stock option as part of his bonus package.
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Many firms provide incentive stock options to motivate their executives, linking their compensation to the company's success.
Synonyms
32
4.8
A right to buy company shares later at a fixed price, often given to employees
A right to buy company stock at a set price if the company meets business goals
Antonyms
Surface Forms
Morphology
A learner who knows 'incentive' (a reward), 'stock' (a company share) and 'option' (a right to buy/sell) can readily infer that this refers to an option on company stock given as a reward to employees. However, the term is a specialized financial/legal construct with specific conditions and tax meanings that are not predictable from the words alone, so the full sense is not completely transparent.
Etymology
Incentive stock option comes from three words: incentive, meaning a 'reward', stock, meaning company 'shares', and option, meaning a 'right to buy' later. So an incentive stock option is a promise from a company to let an employee 'buy' company 'shares' later as a 'reward' if they stay or if the company does well.