DEFINITION of 'Option Schedule'

A list of options grants to an employee or employees of a company that contain the date and size (in shares) of each grant, as well as the expiration date, exercise price and vesting schedule. Option schedules for high-level officers and directors of a public company must be reported to the SEC and are also typically shown on 10-Q and 10-K filings for the company.

BREAKING DOWN 'Option Schedule'

While the option schedule is most important to the company itself for maintaining proper accounting records, investors are also interested in the option schedule because it provides a window into current and future liabilities. It also shows the potential that common shares will become diluted, as exercised stock options add to the total outstanding share count.

There have been many changes in recent years as to how employee stock options may be granted, reported and presented to investors. In the wake of options backdating scandals and other accounting shenanigans, investors are paying more attention than ever to this lucrative form of employee compensation.

  1. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
  2. Early Exercise

    Early exercise is the process of buying or selling shares under ...
  3. Non-Qualified Stock Option - NSO

    An alternate way of compensating employees is by offering them ...
  4. Reload Option

    A type of employee compensation in which additional stock options ...
  5. Call On A Call

    A type of compound option in which the investor has the right ...
  6. Incentive Stock Option - ISO

    An incentive stock option (ISO) is a type of employee stock option ...
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  1. What is options backdating?

    Options backdating occurs when companies grant options to their executives that correspond to a day where there was a significantly ... Read Answer >>
  2. How Do Insiders Buy Stock at Below Market Value?

    Stock options allow executives and key employees to buy stock at a price below market value. Read Answer >>
  3. What is a vest fleece?

    A vest fleece is a term first coined by Jack Ciesielski, founder of The Analyst's Accounting Observer, and it relates to ... Read Answer >>
  4. When holding an option through expiration date, are you automatically paid any profits, ...

    Holding an option through the expiration date without selling does not automatically guarantee you profits, but it might ... Read Answer >>
  5. How do I change my strike price once the trade has been placed already?

    Learn how the strike prices for call and put options work, and understand how different types of options can be exercised ... Read Answer >>
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