{"componentChunkName":"component---src-templates-blog-post-ts","path":"/the-purpose-of-stock-option-plan/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"ecc2c8cd-7991-57f6-a9d4-71baf190fb39","excerpt":"Stock options are often issued as a part of a company’s incentive program to the company’s and its subsidiaries’ key persons who are working on the company’s…","html":"<p><strong>Stock options</strong> are often issued as a part of a company’s incentive program to the company’s and its subsidiaries’ key persons who are working on the company’s projects. The purpose of the stock options is to give personnel a <em>financial incentive</em> to work hard to increase the company’s shareholder value. This is a common strategy with businesses as the employees can see their connection with their work and the company they are staying with. </p>\n<p>In this article, SSH Communications launched a new stock option plan with the intention to encourage and motivate their employees to stay and work long-term. However, many things affect their stock value that they cannot control as well.</p>\n<p><a href=\"http://globenewswire.com/news-release/2014/09/18/666835/0/en/SSH-COMMUNICATIONS-SECURITY-CORPORATION-HAS-DECIDED-ON-A-NEW-STOCK-OPTION-PLAN.html?\" target=\"_blank\" rel=\"nofollow noopener\">Read the article here.</a></p>\n<h3>Takeaway:</h3>\n<ul>\n<li>Stock options can encourage employee performance but their value is often out of the employee control. Any negative fluctuations could result in a loss of motivation and the opposite is also true, where positive fluctuations will encourage performance.</li>\n</ul>\n<p>Are you a Startup Company? Check out Clausehound.com’s Small Business Law Library <a href=\"https://www.clausehound.com/documents/\" target=\"_blank\" rel=\"nofollow noopener\">here!</a></p>","frontmatter":{"title":"The Purpose of a Stock Option Plan","date":"January 31, 2016","description":"Stock options are often issued as a part of a company’s incentive program to the company’s and its subsidiaries’ key persons who are working on the company’s projects. The purpose of the stock options is to give personnel a financial incentive to work hard to increase the company’s shareholder value.","author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal","bio":"Rajah Lehal is Founder and CEO of Clausehound.com.  Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.","image":{"childImageSharp":{"fluid":{"base64":"data:image/jpeg;base64,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","aspectRatio":1,"src":"/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg","srcSet":"/static/d7bbad08c257f3987a4a5710553e9e17/2b9ee/Rajah.jpg 80w,\n/static/d7bbad08c257f3987a4a5710553e9e17/e5d64/Rajah.jpg 160w,\n/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg 320w,\n/static/d7bbad08c257f3987a4a5710553e9e17/6e63d/Rajah.jpg 400w","sizes":"(max-width: 320px) 100vw, 320px"}}}},"tags":["ESOP","Purpose","Human Resources","Rajah"]}}},"pageContext":{"slug":"/the-purpose-of-stock-option-plan/","previous":{"fields":{"slug":"/limited-liability-partnership-what-is-an-llp/"},"frontmatter":{"title":"Limited Liability Partnership: What is an LLP?","tags":["Long Form","Partnership","Commercial Activities","LLP"],"author":{"id":"info@clausehound.com","first":"","last":null}}},"next":{"fields":{"slug":"/non-competition-clauses-is-5-years-too-long-to-promise-not-to-compete/"},"frontmatter":{"title":"Non-competition Clauses: Is 5 Years Too Long to Promise not to Compete?","tags":["Employment Agreement","Long Form","Business","Consulting Agreement","Non-competition","Commercial Activities"],"author":{"id":"info@clausehound.com","first":"","last":null}}}}}}