STOCK OPTION PLAN: A STRATEGIC TOOL FOR EMPLOYEE RETENTION

In a competitive business environment characterized by unpredictable economic dynamics, Employee Stock Option Plans become more and more popular within companies. These plans are seen as effective solutions to boost performance and optimize costs, particularly with regard to labor relations. By allowing employees to become shareholders, they align their interests with those of the company.

According to the definition given by the Romanian Tax Code, in Article 7, point 39, a stock option plan is a programme established by a legal entity which grants its employees, directors and/or managers or to an affiliated legal entity, the right to purchase at a preferential price or to receive free of charge a specified number of shares issued by the said entity. The ESOP can be successfully implemented by both listed and unlisted companies, including non-stock companies.