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Dictionary by pitch.dog
Performance, pay & rewards · Core

Stock option

Also called: employee option

ELI5

A right to buy shares at a specified price during a defined period.

Used in conversation

“Do not describe stock option as agreed until the operative document says so.”

Pitch context

You will see “Stock option” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.

Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

When the words have to travel

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Sources & evidence · 2

Direct term-level sources and supporting source families.