Compensatory Stock Options

Compensatory Stock Options means:
options offered to employees as partial compensation for their services. Such compensation is measured by the quoted market price of the stock at the measurement date less the amount the employee is required to pay (the option price). The measurement date is the earliest date on which both the number of shares to be issued and the option price are known. Stock options are taxed in various ways.

See also other Tax Terms and Definitions in U.S.A.

incentive stock option; nonstatutory option; statutory option.

U.S. and other Developed Countries International Tax Meaning

Options offered to employees as partial compensation for their services.