Share options are commonly given to employees as a reward or
incentive. When the shares are fully "vested" it means
that they are fully owned by the employee after a certain period of
time or if certain conditions are met.
With a myriad of terms like 'time-based vesting,'
'vesting schedules', 'equity compensation' and
'restricted stock units,' it can seem overwhelming.
However, these concepts play a significant role in shaping the
financial futures of employees and the growth trajectory of
companies.
Overview of Share Options
Share Options are a form of equity compensation, which employees
earn over a set option or vesting period.
This is usually defined in a vesting schedule that outlines when
and how the shares will vest.