Will I be granted stock options and/or restricted stock automatically every year?
Companies tend to grant options at hire and only periodically thereafter for any of the following reasons:
- to reward performance
- to motivate employees with vested stock options
- to match other job offers
- to retain employees through mergers or IPOs
- to respond to volatility in the stock price
For survey data on the eligibility and frequency of stock grants, and common events that trigger stock grants, see a related FAQ.