Employee Stock Options

Employee stock options can make up a large component of compensation for some employees. Many tech companies will award stock options to employees as a way to make the employees vested in the future of the company. The employee is rewarded when the stock price goes up, and the employer is rewarded by giving employees a financial "stake" in the company. Options usually vest over a period of years, so stock options are also often used as one way to minimize employee turnover.

Also of interest:

• Salary Calculators
• Restricted Stock Units
• How to Pick a Start Up