페이지 정보작성자 최고관리자 댓글 0건 조회 166회 작성일 19-01-26 14:32
Definition of Stock Purchase Option (Stock Option)
Stock options (stock options) are the rights granted by the Company to employees and others, and means the right to buy stocks at a predetermined price after a certain period of time. It does not give the stock itself because it gives you the right to buy it. In other words, the stock option is 'given' or 'granted'. If the stock option is exercised at a later date, the company will sell the new stock or treasury stock to the investor.
Future-oriented compensation means
The option to purchase stocks is a right granted to the corporation or its employees to contribute to the establishment, management, overseas business or technological innovation of the corporation, or to the employees of affiliated companies of the corporation. It is a future-oriented compensation method to distribute the increase of corporate value to the employees.
Stock options negotiate annual salary
In practice, it is difficult to meet the salary or welfare level when starting up talented people are hired, and negotiate the salary by granting stock options. From a company standpoint, bonus cash can reduce the burden now and secure a positive stake for management. In addition, workers' productivity and motivation to work are improved and smooth recruitment and escape prevention for high-quality human resources are possible. In addition, if you are engaged in venture businesses, etc., you have the advantage of having a preferential tax exemption of up to 50 million won per year. However, it may complain that inconsistencies with employees who do not have stock options are violated and contravene the principle of fairness.
Method of Granting Stock Purchase Option
There are four ways to grant stock options: issuance of new shares, issuance of treasury stocks, and cash or treasury stock issuance. The grant ceiling is within 15% of the total number of issued shares (if granted by special resolution of the general meeting of shareholders) for listed corporations. The exercise price is higher than the market price and face value, and the exercise period is determined by the articles of association. In principle, it can be exercised only if it has been held for two years or more.
Stock purchase options procedure
1) Specification of stock options in the articles of incorporation: Qualifications of the person granted the stock option, duration of the stock option, number and type of shares to be issued or transferred
2) Special resolution of shareholders' meeting: name of the person to be granted stock option, method of grant, amount of exercise price,
3) Granting of Stock Purchase Option Agreement: Signing a contract with the grantee and making a written contract for a considerable period of time
4) Contract: The contract is to be kept at the head office so that it can be read during business hours until the expiration date of the stock purchase option expires.
The statutory limit for granting stock options is fixed, and the ceiling for venture companies and other companies is different.
- 50/100 of the total number of shares issued by unlisted and unregistered venture companies under the Venture Act
- 15/100 of the total number of shares issued by a normal company or association registered company
Stock options that are floating on the Internet are not validated, and stock options are often not included in the Articles of Incorporation. For this reason, it is recommended that you take the legal articles of incorporation thoroughly through lawyers. Therefore, it is advisable for companies that are currently implementing stock options to obtain counseling through a lawyer and to make sure that they are in accordance with the company's constitution.