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evergreen option

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Financial Dictionary

Evergreen Option

An employee option plan that grants additional shares to the plan every year.

Investopedia Commentary

The number of shares granted to the plan is determined by a set percentage of the company's common shares outstanding.

In most cases, these plans don't have an expiry date and do not require shareholder approval.

Also known as an evergreen plan.

See also: Employee Stock Ownership Plan - ESOP, Option, Reload Option

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