A »Stock options and ESPPs are equity-based compensation plans. Stock options grant employees the right to buy company stock at a predetermined price, while ESPPs allow employees to purchase company stock at a discounted rate. Both plans incentivize employees to contribute to the company's growth, as their compensation is tied to the company's stock performance.

A »Stock options grant employees the right to purchase company shares at a fixed price, benefiting from price increases. ESPPs allow employees to buy shares at a discount through payroll deductions. For example, if an option is set at $10 and the stock rises to $15, employees profit $5 per share. In ESPP, a 15% discount on a $20 stock means employees pay $17, realizing immediate gain.

A »Stock options grant employees the right to buy company stock at a predetermined price, while ESPPs allow employees to purchase company stock at a discounted rate, often through payroll deductions. Both offer potential financial benefits, but come with risks and tax implications that employees should understand before participating.