What Are Employee Stock Options? - TheStreet Definition

Dictionary of Financial Terms

These options are granted to employees of a company to align their interests with the those of general shareholders and to motivate employees to focus on causing the stock price (and therefore the value of the options) to rise. These options are always a call and typically long-dated (that is, they expire years from now). Their strike price usually is set to the current stock price at time of issuance.

Definitions of Financial Terms