compensatory stock option

compensatory stock option definition - business

compensatory stock option

A stock option given by an employer to an employee as partial compensation for the employee's services. In general, the value of a compensatory stock option is considered an expense for the employer and taxable income to the employee.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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