Compensatory Stock Option

Business, Legal & Accounting Glossary

Definition: Compensatory Stock Option

Compensatory Stock Option

Full Definition of Compensatory Stock Option

An option giving an employee the right to purchase the issuing corporation’s stock at a specified price within a defined period as partial payment for the employee’s services. The measurement date is the earliest date on which both the option price and the number of shares to be issued are known.

Compensation = quoted stock market price at the measurement date – option price

Cite Term

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Page URL
Modern Language Association (MLA):
Compensatory Stock Option. Payroll & Accounting Heaven Ltd. November 29, 2021
Chicago Manual of Style (CMS):
Compensatory Stock Option. Payroll & Accounting Heaven Ltd. (accessed: November 29, 2021).
American Psychological Association (APA):
Compensatory Stock Option. Retrieved November 29, 2021, from website:

Definition Sources

Definitions for Compensatory Stock Option are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.