A list of options grants to an employee or employees of a company that contain the date and size of each grant, as well as the expiration date, exercise price and vesting schedule. Option schedules for high-level officers and directors of a public company must be reported to the SEC and are also typically shown on 10-Q and 10-K filings for the company.
While the option schedule is most important to the company itself for maintaining proper accounting records, investors are also interested in the option schedule because it provides a window into current and future liabilities. It also shows the potential that common shares will become diluted, as exercised stock options add to the total outstanding share count.
There have been many changes in recent years as to how employee stock options may be granted, reported and presented to investors. In the wake of options backdating scandals and other accounting shenanigans, investors are paying more attention than ever to this lucrative form of employee compensation.
