[v. oh-ver-hang; n. oh-ver-hang] 
verb, -hung, -hang⋅ing, noun | 1. | to hang or be suspended over: A great chandelier overhung the ballroom. |
| 2. | to extend, project, or jut over: A wide balcony overhangs the garden. |
| 3. | to impend over or threaten, as danger or evil; loom over: The threat of war overhung Europe. |
| 4. | to spread throughout; permeate; pervade: the melancholy that overhung the proceedings. |
| 5. | Informal. to hover over, as a threat or menace: Unemployment continues to overhang the economic recovery. |
| 6. | to hang over; project or jut out over something below: How far does the balcony overhang? |
| 7. | something that extends or juts out over; projection. |
| 8. | the extent of projection, as of the bow of a ship. |
| 9. | Informal. an excess or surplus: an overhang of office space in midtown. |
| 10. | a threat or menace: to face the overhang of foreign reprisals. |
| 11. | Architecture. a projecting upper part of a building, as a roof or balcony. |
| o·ver·hang (ō'vər-hāng') v. o·ver·hung (-hŭng'), o·ver·hang·ing, o·ver·hangs v. tr.
To project over something that lies beneath. See Synonyms at bulge. n. (ō'vər-hāng')
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Overhang
Calculated as stock options granted, plus the remaining options to still be granted, and then divided by the total shares outstanding.
Investopedia Commentary
A high percentage for the overhang is usually a bad thing. It means there is a growing possibility that the options will be exercised and dilute the company's stock.
Related Links
The "True" Cost of Stock Options
Accounting and Valuing ESOs
See also: Employee Stock Ownership Plan (ESOP), Exercise, Incentive Stock Option (ISO), Nonqualified Stock Option (NSO), Option
vərˈhæŋ