Many employers struggle to find ways to tie their employees' incentives to the company's one term interests. One commonly used method is to offer their employees stock options.

These stock options tie employees' incentives to the company's long-term interests because the stock options usually cannot be exercised and then sold for a certain period of time. Given this, employees will likely work harder with the hope of improving the value of their stock option. 

These options, however, are not all the same. Stock options typically fall in one of two clases. They are either considered incentive stock options or non-qualified stock options. These two options usually have different impacts on both employees and employers.

If you have questions about your compensation stock options, contact the Houston employment compensation attorneys of the Ross Law Group at 800-634-8042.