Company options have some benefits for both companies and employees. For the company, company option helps to motivate employees to create more value for the company, and also helps the company to retain outstanding employees. For employees, company options allow them to participate in the growth of the company and get benefits when the company's performance improves. In addition, company options can also help employees realize their own financial planning, especially for employees who stay for a long time.
Although company options have many advantages, they also have some risks. The first is market risk, because the difference between the company's option price and exercise price depends on the fluctuation of the company's stock price. If the company's share price falls, employees may lose their exercise rights, so they need to be carefully managed. In addition, company options may also be affected by taxes, so employees need to know their tax responsibilities and make financial plans.