Definition
Option grant is the award of stock options to employees as part of compensation or incentive programs. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Option grant on the board and restates it: “Award of stock options to employees as part of compensation or incentive programs.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Option grant as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Option pool
Reserved shares of company stock set aside for employee stock options and equity compensation.
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Operations research
Analytical method of problem-solving and decision-making in business operations.
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Opportunity cost
Value of the next best alternative that is foregone when making a decision.
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Order backlog
Accumulated orders that have been received but not yet fulfilled.
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