Performance, pay & rewards · Core

Stock option

Also called: employee option

ELI5

A right to buy shares at a specified price during a defined period.

Used in conversation

“Do not describe stock option as agreed until the operative document says so.”

Pitch context

You will see “Stock option” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.

Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

Employee stock optionThe search label “stock option” can route to both entries.

Sources & evidence · 2

Direct term-level sources and supporting source families.

U.S. Bureau of Labor Statistics — BLS GlossaryDirect source · primary · checked 2026-08-16
OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16