What should employees do after leaving with stock options?

Stock option refers to a special kind of stock issued by employers to employees, and employees can buy shares of the company at a preferential price within a certain period of time. As an incentive mechanism, stock option aims to motivate employees to make more contributions to the development of the company and connect with the interests of the company.

The concept of stock option appeared as early as 1970s. With the advent of the new economic era, stock options have gradually become a common way for enterprises to motivate employees. In 2005, China's stock options were formally incorporated into the Company Law, which provided a legal basis for enterprises to use stock options within the statutory scope.

Features and characteristics

The characteristic of stock option is that employees have the right to buy company shares at a preferential price at some point in the future, which is an incentive mechanism. The advantages and disadvantages of stock options are also obvious. The advantage is that it can encourage employees to make more contributions to the development of the company. The disadvantage is that employees may not get practical benefits because of the poor performance of the company.

Stock options are widely used in enterprises, especially in the field of new economy. Stock options can be used to motivate employees to contribute to the development of enterprises, and can also be used to recruit and retain talents.

The research on stock option mainly focuses on its incentive effect, implementation mode and tax treatment. At present, scholars at home and abroad have conducted extensive research on the effect and implementation of stock options, but there is relatively little research on the treatment of post-employment stock options.

Prospect and development

With the development of China's new economy and the continuous growth of enterprises, stock options will become an incentive way for more enterprises. In the future, the implementation mode and tax treatment of stock options will also be more studied and improved to better play the incentive role of stock options. For employees, it is necessary to understand the relevant provisions and precautions of stock options before leaving their jobs in order to make better decisions.