evergreen stock option plan

evergreen stock option plan definition - finance
A plan that automatically gives boards of directors an annually renewable pool of stock shares to distribute to the companyÂ’s executives as compensation. Typically, the distribution is calculated as a fixed percentage of shares outstanding. The term evergreen comes from the fact that a board needs to obtain authorization from shareholders to institute such a plan only once instead of each year.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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