A "Stock Option Plan" ("SOP") is an
extremely popular method of attracting, motivating and retaining
mostly the key employees, particularly when the company is unable
to pay high salaries. This method is often used in the United
States and European countries. Due to legal restrictions and lack
of legislative background regarding SOPs, such option plans have
yet to develop in Turkey. Upon the entry into force of the recent
Turkish Commercial Code, SOPs did become exercisable in Turkey,
however, and frequently preferred in publicly traded companies.
A SOP gives a company the flexibility to award stock options to
employees, officers, directors, advisors and consultants, allowing
them to buy stock in the company when they exercise the option.
Most companies, both at home and abroad, are utilizing this scheme
as an essential tool to reward and retain their employees.
Currently, this form of restructuring is most prevalent in start-up
companies and in IT companies where
