These days, it's getting harder and harder to retain good employees. There are many reasons for this. On the one hand, there's a competitive market, with many attractive companies. On the other, professionals who are fickle in their careers, without solid goals or commitments.

That's why it's so important to offer interesting conditions to prevent job changes. A healthy environment and a career plan are good examples. But remuneration is perhaps the main point.

It is in this scenario that an alternative that is very common abroad and is growing in Brazilian companies has grown: the Stock Option. In order to offer new benefits, it has emerged as an interesting variable remuneration option for corporations.

In this article, we explain what it is, as well as the advantages and disadvantages of using a Stock Option in your company.

What is variable remuneration?

As the name implies, it's the kind of gain that doesn't remain constant. These are variable reward instruments that complement the employee's fixed salary.

Variable remuneration is very common in situations linked to the performance of a team, an employee or even the company as a whole.

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What is a Stock Option?

Despite the different name, it's very simple. It's a term that originated in the USA, whose full name is Employee Stock Options Plans or as it's also known in Brazil as Plano de Opção de Compra de Ações.

And that's exactly what it is.

Stock options are nothing more than an alternative form of variable remuneration, generally offered to managers and executives, linked to the performance of the company offering the option.

Employees now have the option of buying shares in the company they work for. They are not obliged to sign up to the Stock Option and, on the other hand, they must pay for it if they choose to, receiving consideration for the gains obtained by the appreciation of the shares.

The company offering the Stock Option must make this clear:

• Grace period
• Share value
• Deadline for exercising the right to buy

Advantages of Stock Options

The main advantage of the stock option is that it encourages employees and company executives.

As soon as employees' earnings are linked to the performance of the business, they start to produce more.

As these are long-term benefits, they make it possible to retain professionals for longer, reducing redundancy and hiring costs and, consequently, making the company more competitive.

Disadvantages of Stock Options

For the employee, there is uncertainty as to the value of the shares. It's a type of remuneration that doesn't allow you to make concrete plans for your life, since the markets in general are extremely volatile.

For the company, there is uncertainty as to whether or not labor charges are levied on the use of stock options. There is no legal provision in Brazil on the subject. Only debates and positions to the contrary or not.

Read also: Meritocracy - how to improve individual performance?

So, is the Stock Option a good alternative for your company? Would you like to have this option where you work? Leave your opinion or questions in the comments!