- Stock options give corporate personnel the right to buy stocks at specified prices at a future date, also called exercise date. Restricted stock options require that workers meet specific vesting criteria, including length of employment, stock price and corporate operating performance and profit targets, according to the National Center for Employee Ownership, a nonprofit providing guidance on employee stock plans.
- Restricted stock options benefit companies and their workforces. Companies find these options advantageous because they help improve employee loyalty and reduce turnover rates, says personal finance expert Sandra Block. Corporate personnel also find restricted stock options economically beneficial because they represent long-term assets suitable for retirement strategies.
- Various corporate personnel administer restricted stock options plans, including human resources managers, employee stock ownership plan administrators and compensation analysts.