Stock Options

A Stock Options policy explains how eligible employees may receive equity compensation through option grants, and it clarifies that awards, vesting, exercise rules, and tax treatment are governed by your stock plan and individual grant agreements, with state-specific terms applied where required.

How to Write a Stock Options Policy

• Start with "why" and introduce the concept.
• Explain that stock options may be offered as part of total compensation and are not guaranteed.
• Point employees to the stock option plan and individual grant agreements as the controlling documents for eligibility, vesting, and other terms.
• State that grants and eligibility are discretionary and can vary across the organization.
• Note that the plan terms can change over time.
• Tell employees where to go with questions.

For advice on writing a Stock Options policy in a specific jurisdiction, see below.