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Accounting for Stock Option

In essence, the stock option is a warrant, which gives elected employees the option to purchase common stock at a given price over an extended period of time. Stock option is popular because it usually effectively compensates employees・ performance. The stock option usually has following features: 1) motivate employees to high level performance; 2) help retain executives and allow for recruitment of new talent; 3) base compensation on employee and company performance; 4) maximize the employee・s after-tax benefit and minimize the employee・s after-tax cost; and 5) use performance criteria over which the employee has control.


Approximate Word count = 455
Approximate Pages = 1.8
(250 words per page double spaced)
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