Osakepalkkiot

Osakepalkkiot, often translated as stock options or stock awards, are a form of remuneration used by companies to incentivize and reward employees, executives, and sometimes even board members. These are typically granted as a right to purchase company shares at a predetermined price, known as the exercise price, over a specified period. The value of an osakepalkkio lies in the potential for the company's share price to rise above the exercise price. If the share price increases, the recipient can exercise their option to buy the shares at the lower exercise price and potentially sell them at the current market price, realizing a profit.

There are different types of osakepalkkiot, including stock options, restricted stock units (RSUs), and performance shares. Stock options give the holder the right to buy shares, while RSUs are shares granted that vest over time or upon meeting certain conditions. Performance shares are awarded only if specific company or individual performance targets are met. The granting of osakepalkkiot is often subject to vesting periods, meaning the recipient must remain with the company for a certain duration before they can exercise their options or receive the shares. This is designed to promote employee retention and long-term commitment. Taxation of osakepalkkiot varies depending on the jurisdiction and the specific type of award.