Employee stock ownership plan ppt
Common Terms in an Options Package. Number of Shares The total number of options granted to an employee, and therefore the maximum number of shares that employee has access to. Strike Price The price the employee must pay to purchase each share if and when the employee chooses to exercise the option. A stock option plan gives an employee the right to buy a certain number of shares in the company at a fixed price for a certain number of years. The price at which the option is provided is called the strike price and is often the market price (or fair market value - FMV) at the time the options are granted.