Stock option plans are an extremely popular method of attracting, motivating, and retaining employees, especially when a company is unable to pay high salaries. A stock option plan gives a company the flexibility to award stock options to employees, officers, directors, advisors, and consultants, allowing these people to buy stock in the company when they exercise the option. Stock option plans permit employees to share in a company’s success without requiring a startup business to spend pr...| AllBusiness.com