An employee stock option plan is:
A)a perk usually only given to the board of directors as compensation.
B)a plan that only partnerships can use to defer compensation to partners.
C)a way to align the interests of employees with those of the owners.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

An employee stock option plan is a way to align the interests of employees with those of the owners. It allows employees the opportunity to purchase company stock at a discounted price, giving them a stake in the success of the company. It is not limited to board of directors or partnerships.

An Employee Stock Option Plan Is