Stock Options are used by many companies to incentivise their employees. Employees get an option to buy the stock at the STRIKE Price.
If the MARKET price is greater than the stock price, then the employee can exercise its options and profit from it.
When the employees exercise their options, they pay the strike price to the company and get SHARES against each option. This results in the increase in the number of shares outstanding. This results in lower EARNINGS Per Share.
The options proceeds received by the company can be thereby used either to buy back shares or can be DEPLOYED in the projects.

Stock Options are used by many companies to incentivise their employees. Employees get an option to buy the stock at the Strike Price.
If the market price is greater than the stock price, then the employee can exercise its options and profit from it.
When the employees exercise their options, they pay the strike price to the company and get shares against each option. This results in the increase in the number of shares outstanding. This results in lower Earnings Per Share.
The options proceeds received by the company can be thereby used either to buy back shares or can be deployed in the projects.