SSH Communications launched a new stock option plan to give their employees incentives to work harder and stay longer with the company. The assumption is that the employee option holder will want to do everything possible to increase the company’s shareholder value. Stock options are given to key persons who are working for the company and its subsidiaries, usually at the discretion of the Board of Directors. These can include persons who are working as consultants on the company’s projects.
The effectiveness of the plan will depend upon the exercise rights of the option holders, and other uncontrollable factors, such as the development of a public market for the shares or the likeliness of a takeover bid.
The article includes a table showing the categories of options, subscription periods and prices.
Takeaway:
- The purpose of a stock option plan is to retain and motivate key employees.