In many cases, the granting of options is not limited to a single exercise, but employees or executives have a stock option where they receive stock options several times, as the company crosses certain milestones. Stock options or stock options in Spanish translation are a way to pay a company`s employees and in particular executives. This form of remuneration is intended to enable executives or employees to acquire, for or without costs, shares of the company in which they work at a price indicated above and which is normally below the market price. By paying stock options, some executives can cash in large sums of money when the share price undergoes strong revaluations. The basic variables that need to be analyzed in an action option given by a manager are: number of options, number of shares you can acquire, price at which you are entitled to buy the shares (exercise price), time to exercise the option and evaluate the stock option. Stock options compensation therefore consists of obtaining a call option (call option) from employees or executives, the annual price being generally lower than the market price. Employees or managers sometimes do not pay a premium for such an option to purchase, as these costs are borne by the company. Stock options purchases are often linked to medium- and long-term compensation plans, prompting a company`s executives to encourage and trust. . The purpose of this type of incentive is to reconcile the interests of shareholders with employees and executives, because the higher the share price, the more they earn both. Rafael Hurtado Coll, Professor of Finance at the EAE Business School Results: 54. You guessed it: 54.
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