Tag: EquityIncentives

Introduction: Employee Stock Option Plans (ESOP) offer a way for companies to provide a stake in ownership to their employees, fostering a culture of unity and commitment towards the company's success. Central to the value of ESOPs is the strike price, which not only influences an employee's potential gain from the options but also reflects the company's current and future valuation expectations. Defining Strike Price within ESOPs: The strike price, also known as the exercise price, is the fixed price at which employees can purchase company stock through their stock options. It...