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English definition of “stock incentive plan”

stock incentive plan

noun [C]     (abbreviation SIP, also share incentive plan) FINANCE, STOCK MARKET, HR
an arrangement where employees own a percentage of their company’s shares so that they make money when the company makes a profit: He will continue to defer the receipt of shares received under a 2007 stock incentive plan for directors.
→ See also employee share ownership plan
(Definition of stock incentive plan noun from the Cambridge Business English Dictionary © Cambridge University Press)
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