With respect to an executive stock option (ESO), it is a form of compensation (reload options) to favored executives in an entity, in a bid to realign them after the exercise and stock sale of their previous options. The new ESOs replace the older ESOs that were exercised by the executives and the sold stock. The reload provision (clause) is not mentioned in the executive’s employment contract with the entity, but is conferred at the sole discretion of the compensation committee.
Finance
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