stock option

noun

1
: an option contract involving stock
2
: a right granted by a corporation to officers or employees as a form of compensation that allows purchase of corporate stock at a fixed price usually within a specified period

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Example Sentences

Recent Examples on the Web In addition, Twitter CEO Parag Agrawal said that Elon Musk agreed to convert employee stock option holders to cash once the deal closes and pay them out on the existing vesting schedule. Derek Baine, Forbes, 26 Apr. 2022 Ready will receive an annual salary of $400,000 and be eligible for a stock option award to buy about 8.6 million Class A shares. Reuters, CNN, 28 June 2022 Soon Fortune 500 companies were jockeying for Patton’s advice on how to attract and retain top executives, by stuffing their pay packages full of bonus plans and stock option programs that would pay out excess rewards for share performance. Scott Decarlo, Fortune, 27 May 2022 Tech employees are often given stock option grants as part of their pay packages, and those who still have jobs would see the value of the options shrink in down rounds. Kenrick Cai, Forbes, 17 May 2022 According to the Journal, Zaslav’s pay packet includes a $203 million stock option that depends upon the company’s stock price doubling by December 2027—a feat that would add tens of billions of dollars in value for shareholders. Eamon Barrett, Fortune, 16 May 2022 The stock option grant comes as Zaslav is about to lead a much larger company as the merger of WarnerMedia and Discovery nears completion. Cynthia Littleton, Variety, 14 Mar. 2022 Netflix disclosed the annual salaries and stock option allocation for 2022 for its executive officers in an SEC filing Tuesday. Todd Spangler, Variety, 21 Dec. 2021 The largest adjustment to shareholder value was $540 million in outstanding employee stock option (ESO) liability. David Trainer, Forbes, 12 Oct. 2021 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'stock option.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Word History

First Known Use

1877, in the meaning defined at sense 1

Time Traveler
The first known use of stock option was in 1877

Dictionary Entries Near stock option

Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 2 Oct. 2022.

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Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: 16 Aug 2022

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