Employee Stock Option Plans (ESOP)

The video tutorial explains how companies compensate employees using stock options, detailing the structure and benefits of employee stock option plans. It covers the concept of vesting periods, tax implications, and the differences between incentive and non-qualified stock options. Key provisions in stock option plans, such as exercise rights and repurchase rights, are also discussed.

What is the primary purpose of an employee stock option plan?

Explain the concept of the strike price in stock options.

What are the tax implications of exercising stock options?

Describe the difference between incentive stock options and non-qualified stock options.

What is a vesting period in the context of stock options?

How does an 83 B election affect the taxation of stock options?

What are some common provisions included in employee stock option plans?