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Stock options are another type of LTIP. After a set length of employment, workers may be able to purchase company stock at a discount while the employer pays the balance. The worker's seniority in the organization increases with the percentage of shares owned.
ESOs are a form of equity compensation granted by companies to their employees and executives. Like a regular call option, an ESO gives the holder the right to purchase the underlying asset?the company's stock?at a specified price for a finite period of time.
Unlike an appreciation-based award, a restricted stock will still have value upon vesting even if the per-stock value decreases. These are also full-value shares; however, the vesting of these types of shares is contingent upon meeting predetermined performance goals.