Stock option is given
by a company to an employee to buy certain number of shares in the company at a
stated fixed price. While the financial share option limits the risk of
financial loss, the practice of stock option for employees works as a bonus.
The difference between the share option for the employees and the profit
sharing is the strengthening of the employee's relationship with the company
and start thinking at long-term benefits when the ownership factor enters into
the picture. As this application is an option, the employee has the right to
choose. Many issues should be considered when using this preference. The most
important criterion here is to seize whether the company could potentially
achieve great success and be offered to the public offering or to be sold to another
company? Questions to be answered by an employee who chooses to use the stock
option: How close is the company to the public? How high is the potential
value? How much of the performance criteria has it achieved in the past? Are
the option conditions challenging? Do I need cash? What are the tax advantages?
Primary Language | Turkish |
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Subjects | Business Administration |
Journal Section | Research Papers |
Authors | |
Publication Date | December 30, 2019 |
Published in Issue | Year 2019 Volume: 3 Issue: 6 |