It's not options either (that would be ESOPs), but actually a kind of bonus structure. If there is an exit event, as specified in the VSOP agreement, you get a bonus that should be the same as what real options would have been worth. They are taxed as normal income, but you do not have to pay tax when you receive them. In the past you would have to pay tax on real options when receiving them even though they'd most likely never pay out.