Stock options are a form of equity compensation that allows an employee to buy a specific number of shares at a pre-set price often called strike price, exercise price or grant price. As the purchase price stays fixed, if the value of the company’s stock goes up, the stock option holder could make money on the difference.
Why Offer Stock Options
Stock options are commonly granted by startups to their employees, advisors and executives as part of their compensation package providing them an opportunity to share in the company’s success.
Stock options are vested over a given time period to ensure that the employee sticks with the company for a while. Vesting schedule is typically outlined in the stock option agreement. Many companies have a vesting schedule that is four years long, often beginning with a standard one-year “cliff.” A cliff is a period of time that has to elapse before you get any of your vested options.
Can Any Company Type Grant Stock Options
Under Greek law both SA and Private Companies (IKE) can issue Stock Options. However, only the stock options issued by SA Companies are subject to a preferential tax treatment