stock option

noun
an option giving the holder, usually an officer or employee, the right to buy stock of the issuing corporation at a specific price within a stated period.

Origin:
1940–45

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Based on the Random House Dictionary, © Random House, Inc. 2014.
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WordNet
stock option

noun
1. the right to buy or sell a stock at a specified price within a stated period 
2. a benefit given by a company to an employee in the form of an option to buy stock in the company at a discount or at a fixed price; "stock options are not much use as an incentive if the price at which they can be exercised is out of reach" 
WordNet® 3.0, © 2006 by Princeton University.
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Example sentences
Stock option compensation should not qualify for the credit.
Since there is no employer cash outlay, there is no justification for subsidizing stock option compensation.
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