picture of Rajah

Rajah Lehal

Stock Option Plans Can Help Motivate and Retain Key Employees

January 09, 2016

Links from this article: Read the article here.

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.

Read the article here.Take away:

  • The purpose of a stock option plan is to retain and motivate key employees.
Purpose of Option Plan
Human Resources
Options and Buyback

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.