Employee Stock Option

Employee Stock Option means:
an opportunity for employees to purchase shares in the company they work for, often at a discount from fair market value. Generally it is provided as an incentive, in some cases with tax incentives, to stay with the employer until the options vest.The two categories of employee stock options for tax purposes are statutory (incentive) stock options and nonstatutory options. Options may be granted under an employee stock ownership plan or a restricted stock plan. Former IRC (check if this IRC provision is current here) §422A.

See Employee Retirement Income Security Act.