term:

Stock Option Plan

stock option plan n

: a form of deferred compensation that allows an employee to buy corporate stock at a set price (as the prevailing market price at the time of the contract) at any time (as when the market price has risen) during a designated number of years

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.