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Selected Issues in Equity Compensation

A Layperson’s Glossary of Employee Stock Option Terminology. Equity compensation has a language all its own. This glossary, compiled by Alisa Baker, defines the most commonly used terms for the layperson.

As with any specialized field, the world of employee stock options has its own vernacular. Stock options and related plans are governed, as well as influenced, by a wide array of laws, regulations, rules, and standards, including tax laws and concepts, securities laws, and accounting principles. The NCEO book Selected Issues In Equity Compensation (13th Ed. 2016), includes this glossary of plain language words and phrases.

First published by the NCEO in Selected Issues in Equity Compensation (2005, updated annually).

© 2005 -2016 Alisa J. Baker, all rights reserved.