Question

Historically, technology firms have been the most aggressive users of stock-based compensation in the form of stock options granted to almost all employees of the firms. What is the rationale for offering stock options as compensation

Answer 1

In the clarification portion down, the definition of the concern is mentioned.

Step-by-step explanation:

• Stock options support workers and employees alike. There is consistency in designing schedule material alongside two primary types of choice plans.
• A stock option would be an agreement by a corporation that offers workers the right to purchase a given amount of company shares before a certain deadline at such a negotiated price.
• There is no duty mostly on the employer to buy any or half of the number of shares indicated throughout the choice. The option is theirs individually, and at some moment mostly during the duration between some of the bid and the last workout deadline, they will usually buy inventory.