I am a bit confused about employee stock options.
What do the following terms mean?
1.Date of Grant Of option,Grant period
2.Date of Vesting,vesting period
3.Date of allotment
I am a bit confused about employee stock options.
What do the following terms mean?
1.Date of Grant Of option,Grant period
2.Date of Vesting,vesting period
3.Date of allotment
Vesting means the process by which the employee gets the right to apply for and be issued Shares of the company under the options granted to him.
Vesting period means the period over which the vesting of the options of the employee Takes place
Exercise period means the time period after vesting within which the employee should Exercise his right to buy the shares by payment of the option price on the options vested in Him. If the exercise period lapses the vested option lapses and no right shall accrue to the Employee thereafter
The act of exercise implies an application being made by the employee to the company to
Have the options vested in him issued as shares upon payment of the option price.
Exercise can take place as specified after vesting
/forum/employee-stock-option-scheme-116739.asp go to this link for more information '
good luck
CAclubindia
