What are the different types of employee stock option plans?
The following four are the different types of employee stock option plans available to employees- Employee stock purchase plan- In the Employee Stock Purchase Plan, the company offers options or shares to their employees at a rate that is lower than the fair market value. Employee stock option scheme- In the Employee Stock Option Scheme, the company offers shares or options to their employees based on performance metrics. The shares offered under this scheme are constrained by a vested period and a predefined valuation. Restricted stock units- The company grants restricted stock units after an event. Stock appreciation rights- Under stock appreciation rights, if an employee meets a prerequisite condition, then the company will offer them cash.