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Term of the Day - September 8, 2004
http://www.investopedia.com
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Term Of The Day: Evergreen Option
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An employee option plan that grants additional shares to the
plan every year.
Investopedia Says:
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The number of shares granted to the plan is determined by a set
percentage of the company's common shares outstanding.
In most cases, these plans don't have an expiry date and do not
require shareholder approval.
Also known as an evergreen plan.
Related Links:
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Article: Option Compensation Part One: the Good, the Bad, and the Ugly
http://www.investopedia.com/articles/analyst/091202.asp
Article: Option Compensation Part Two: To Expense or Not To Expense?
That Is the Question--Or Is It?
http://www.investopedia.com/articles/analyst/092502.asp
Article: Company Stock Options - The Real Story
http://www.investopedia.com/articles/01/120601.asp
Related Terms:
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Employee Stock Ownership Plan - ESOP
http://www.investopedia.com/terms/e/esop.asp
Option
http://www.investopedia.com/terms/o/option.asp
Reload Option
http://www.investopedia.com/terms/r/reloadoption.asp
Have a Great Day!
The Investopedia Staff
http://www.investopedia.com
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