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What type of stock-option plan is better for an employee, time-vested or performance-based and why?

What type of stock-option plan is better for an employee, time-vested or performance-based and why?

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Answer #2

Performance-based stock-option is better for an employee. With performance based stock-option it is in the control of the employee to perform better and be able to exercise the option early.

In a time-vested stock-option plan, employee will have to wait for the option to be vested before he/she can exercise the option. There will be no motivation for the employee to perform better and improve on oneself.

Therefore, performance-based stock option is better for an employee.

answered by: anonymous
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