The stock option is excercised at retirement at some past share price.
For example: $20 per share and the employee is authorized to buy X,XXX shares.
The quantity varies by the managers position, CEO’s too.
The person retires and exercises their option. The markey price is now $48.00 per
share and the retiree usually waits a while to their next tax year to sell some.
I think five years was the time limit for the individual to sell all their option shares.
If they had other share purchases, those could be handed over to wives and children.