Employee Stock Option

Definitions

1. A right granted to an employee to buy company shares at a fixed strike price, usually subject to vesting over time. Employee stock options are a standard part of startup compensation packages.

   In plain English: A right for an employee to buy company shares later at a set price.

   Example: "Her employee stock option grant looked small until the company repriced at the next round."

Related Terms

• Vesting
• Employee Option Pool
• Equity Vesting
• ESOP
• Advisory Shares
• Call Option
• Cliff Vesting
• Stock Option
• Stock Vesting
• Vesting Schedule